Which of the Following Amounts Is Closest to the Value

question 51

Multiple Choice

Which of the following amounts is closest to the value of a bond that pays $55 semiannually and has an effective semiannual interest rate of 5%? The face value is $1,000 and the bond matures in 3 years. There are exactly six months before the first interest payment.

• A) $888
• B) $1,000
• C) $1,014
• D) $1,025
• E) $1,055

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Definitions:

Pineal Gland

A small, pea-shaped gland in the brain that produces and regulates some hormones, including melatonin, which affects the sleep cycle.

Melatonin

A hormone produced by the pineal gland, regulating sleep and wakefulness.

Bright Light

Involves the exposure to intense levels of light, often used as a treatment modality for certain disorders such as seasonal affective disorder.

Circadian Rhythm

The physical, mental, and behavioral changes that follow a 24-hour cycle, responding primarily to light and darkness in an organism's environment.