A 20-Year Bond Pays 9% on a Face Value of $1,000

question 74

Multiple Choice

A 20-year bond pays 9% on a face value of $1,000. If similar bonds are currently yielding 6%, what is the market value of the bond? Use annual analysis.

• A) Under $1,300
• B) Exactly $1,000
• C) Over $1,300
• D) Not enough information is given to tell.

---

Definitions:

Breaches of Confidentiality

Unauthorized disclosure of private information, violating someone's right to privacy.

Group Counselors

Professionals skilled in guiding and supporting a collective group in addressing and overcoming shared psychological challenges or themes.

Guarantee

A formal assurance that certain conditions will be fulfilled, often related to the quality of a product or service.

Rationalization

Rationalization is a defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.