Kaitlyn Purchases a $1,000 Corporate Bond with a Fixed Interest

question 3

Multiple Choice

Kaitlyn purchases a $1,000 corporate bond with a fixed interest rate of 5 percent for $900. What is the most likely explanation for this apparent bargain?

• A) Overall interest rates in the economy increase.
• B) Someone just wanted to get rid of the bond quickly.
• C) The bond receives a better rating by Standard & Poor's or Moody's.
• D) Overall interest rates in the economy decrease.
• E) The company just introduced a new product.

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Definitions:

Plasma Membrane

The plasma membrane is a biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Glycocalyx

A dense layer of glycoproteins and polysaccharides that surrounds the plasma membrane of cells, important for cell recognition and interaction.

Phospholipid Bilayer

A fundamental structure in all cell membranes, consisting of two layers of phospholipids, which provides a barrier that marks the boundaries of a cell.

Selectively Permeable

A property of cell membranes that allows certain molecules or ions to pass through it by means of active or passive transport, while blocking others.