If You Purchase a Three-Year, 9 Percent Coupon Bond for $950

question 82

Multiple Choice

If you purchase a three-year, 9 percent coupon bond for $950, how much could it be sold for two years later if interest rates have remained stable?

• A)$964.95
• B)$981.56
• C)$983.33
• D)$1,000.00 Using the BAII Plus calculator:

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Definitions:

Percentage Form

A way of expressing numbers as a fraction of 100.

Percentage Form

A way of expressing numbers as a fraction of 100, symbolized by the percent sign (%).

Sticker Price

The full retail price of a vehicle, as displayed on a sticker in the car's window; commonly used to refer to the initial asking price of goods.

GST

The Goods and Services Tax is a form of value-added tax applied to almost all goods and services purchased for use within the nation.