Chris Pays $10,000 for a Newly Issued Two-Year Government Bond

question 52

Multiple Choice

Chris pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon rate. One year later, after receiving the first coupon payment, Chris sells the bond. If the current one-year interest rate on government bonds is 7 percent, then the price Chris receives is:

• A)$10,000.
• B)$700.
• C)greater than $10,000.
• D)less than $10,000.

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Definitions:

Training

Is a planned attempt by an organization to facilitate employee learning of job-related knowledge, skills, and behaviors.

Expatriate Managers

Employees sent by their companies to work in a foreign country, representing and managing the company's interests abroad.

Social Exchanges

Social exchanges refer to the mutual and dynamic interactions of resources, information, or services between individuals or groups, often analyzed in social psychology and sociology to understand social structures and relationships.

Repatriation

The process of returning a person to their country of origin or citizenship, often used in the context of employees returning home after an international assignment.