You Have Just Been Offered a $1,000 Par Value Bond

question 35

Multiple Choice

You have just been offered a $1,000 par value bond for $847.88.The coupon rate is 8 percent,payable annually,and interest rates on new issues of the same degree of risk are 10 percent.You want to know how many more interest payments you will receive,but the party selling the bond cannot remember.Can you determine how many interest payments remain?

• A) 14
• B) 15
• C) 12
• D) 20
• E) 10

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Definitions:

Earth's Concentric Zones

Refers to the internal layers of the Earth, which include the crust, mantle, outer core, and inner core, arranged from surface to center.

Mantle

The thick layer of rock between the Earth's crust and core, playing a key role in tectonic movement and heat transfer.

Core

The innermost layer of the Earth, composed of an iron-nickel alloy and divided into a solid inner core and a liquid outer core.

Lithosphere

The rigid outer layer of the Earth, consisting of the crust and the upper mantle.