If the Interest Rate of a One-Year Bond Is 15

question 124

Multiple Choice

If the interest rate of a one-year bond is 15% and its dollar price is $3,250,the par value of the bond is:

• A) $3,737.50.
• B) $2,826.09.
• C) $373.75.
• D) $282.61.
• E) $3,350.00.

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Definitions:

Norman Angell

British journalist, author, and Nobel Peace Prize laureate, best known for his work "The Great Illusion," which argued that the economic interdependence of nations would make war futile.

Gavril Princip

The Bosnian Serb nationalist who assassinated Archduke Franz Ferdinand of Austria in 1914, an event that sparked the outbreak of World War I.