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

question 47

Multiple Choice

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

• A) $3,737.50.
• B) $2826.09.
• C) $373.75.
• D) $282.61.
• E) $3,350.00.

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Definitions:

Parity Ratio

is a measurement used to compare the value of one thing against another, often in agriculture or finance.

Prices Received

The amounts of money received by producers or sellers for their goods or services in the market.

Nicotine

A toxic colorless or yellowish oily liquid that is the chief active constituent of tobacco, acting as a stimulant when consumed.