It Is May 1

question 1

Multiple Choice

It is May 1. The quoted price of a bond with an Actual/Actual (in period) day count and 12% per annum coupon in the United States is 105. It has a face value of 100 and pays coupons on April 1 and October 1. What is the cash price??

• A) 106.00
• B) 106.02
• C) 105.98
• D) 106.04

---

Definitions:

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms or standards of a group.

Social Psychology

The scientific study of how individuals think, feel, and behave in a social context.

Behave Toward

The manner in which an individual acts or conducts themselves in relation to others or a particular situation.

Think About

The process of considering or pondering something in one's mind.