The Price of a Bond Is Equal to the Sum

question 70

Multiple Choice

The price of a bond is equal to the sum of the present values of its future payments.Suppose a certain bond pays $50 one year from today and $1,050 two years from today.What is the price of the bond if the interest rate is 5 percent?

• A)$1,050.00
• B)$1,045.35
• C)$1,000.00
• D)$945.35

Recognize the role of synesthesia in sensory perception and the intersection of neuroscience with art.

Understand the physiological and psychological effects of insomnia and sleep disorders on health.

Recognize the potential effectiveness and limitations of hypnosis in behavioral modification, such as smoking cessation.

Identify the long-term effects of heavy and chronic substance use, including marijuana, opioids, and the mechanism of drug tolerance.

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Definitions:

Breakup

The end of a personal relationship through separation or divorce.

Romantic Partners

Individuals engaged in a romantic relationship with one another, often characterized by love, commitment, and emotional bonding.

Positive Illusions

Unrealistically favorable attitudes people have towards themselves, their situations, or their future prospects.

Relational Bias

The tendency to perceive or judge in favor of those with whom one has a close relationship or to whom one feels similar.