A Bond with Semi-Annual Interest Payments,all Else Equal,would Be Priced

question 16

Multiple Choice

A bond with semi-annual interest payments,all else equal,would be priced _________ than one with annual interest payments.

• A) higher
• B) lower
• C) the same
• D) it is impossible to tell
• E) either higher or the same

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Definitions:

MgBr

Magnesium bromide, a chemical compound used as a reagent in organic synthesis, particularly in Grignard reactions.

7-Methyl-2-octanone

A ketone where the ketone group is positioned at the second carbon of an octane chain that has a methyl group attached to its seventh carbon.

Reagents

Agents or compounds inserted into a system with the purpose of starting a chemical reaction or assessing whether a reaction takes place.

Heptanoic Acid

A saturated fatty acid with the chemical formula C7H14O2, known for its odorous characteristic and usage in the synthesis of esters for fragrances.