Assume That the Price of a $1,000 Zero-Coupon Bond with Five

question 48

Multiple Choice

Assume that the price of a $1,000 zero-coupon bond with five years to maturity is $567 when the required rate of return is 12 percent. If the required rate of return suddenly changes to 15 percent, what is the price elasticity of the bond?

• A) -.980
• B) 0.98
• C) -.494
• D) 0.494
• E) none of the above

---

Definitions:

Dehumanization

The process of depriving a person or group of positive human qualities, often leading to the justification of inequality or violence against the dehumanized group.

Punitive Social Control

A form of social control that emphasizes punishment as a response to deviance, aiming to deter unwanted behaviors through sanctions or corrective measures.

Marginalized Youth

Marginalized Youth refers to young individuals who experience disadvantage or exclusion due to factors like socio-economic status, race, gender, sexual orientation, or disability.

Transnational Lives

The experiences and lifestyles of individuals who live across or traverse national boundaries, maintaining connections to multiple countries.