If You Own a $1,000 Face Value Bond with One

question 128

Multiple Choice

If you own a $1,000 face value bond with one year remaining to maturity and a five percent coupon rate and new bonds are paying 12 percent, what is the most you can get for your old bond?

• A)$1,120
• B)$1,000
• C)$937.50
• D)impossible to determine without additional information

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Definitions:

Depolarizing Currents

Electrical currents that reduce the membrane potential of neurons, making the inside less negative and closer to the threshold for firing an action potential.

Action Potentials

short-lasting events in which the electrical membrane potential of a cell rapidly rises and falls, allowing neurons to transmit signals.

Synaptic Gaps

The small spaces between neurons across which neurotransmitters travel to transmit signals from one neuron to another.

Neurotransmitters

Chemicals released by one neuron (usually the presynaptic neuron), which trigger a response in another neuron (usually the postsynaptic neuron); the chief means of communication among neurons.