You Own a $1,000 Bond That Pays 9

question 44

Multiple Choice

You own a $1,000 bond that pays 9.25% interest.What is the amount of interest you will receive each six months?

• A) $4.62
• B) $9.25
• C) $92.50
• D) $46.25
• E) $23.13

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Definitions:

External Factor

Influences that impact an individual or organization but originate outside of their control.

Illusion of Control

The erroneous belief that one can influence or control outcomes that are actually determined by chance.

Discounting Principle

A psychological concept suggesting that when there are multiple perceived causes for behaviour, the importance of any single cause is diminished.

False Consensus Effect

The cognitive bias where a person overestimates the extent to which their beliefs, values, or behaviors are normal and shared by others.