A Corporation Has Promised to Pay $1,000 20 Years from Today

question 90

Multiple Choice

A corporation has promised to pay $1,000 20 years from today for each bond sold now. No interest will be paid on the bonds during the 20 years, and the bonds are discounted at an interest rate of 7%, compounded semiannually. Approximately how much should an investor pay for each bond?

• A) $70.00
• B) $252.57
• C) $629.56
• D)$857.43

---

Definitions:

Ethnic Group

A social category of people who share a common culture, such as a common language or dialect, a common religion, or common norms, practices, and customs.

Herrnstein and Murray

Authors of "The Bell Curve," a book that explores the relationships among intelligence, race, and socioeconomic status in the United States.

The Bell Curve

A book by Herrnstein and Murray suggesting that human intelligence is substantially influenced by both inherited and environmental factors and is a better predictor of many personal dynamics, including financial income, job performance, birth out of wedlock, and involvement in crime.

Public Debate

A discussion conducted openly in the public sphere, where individuals or groups present differing viewpoints on specific issues.