If You Own a $1000 Face Value Bond with One

question 26

Multiple Choice

If you own a $1000 face value bond with one year remaining to maturity and a five per cent interest rate, and new bonds are paying 12 per cent, what is the most you can get for your old bond?

• A)$1120
• B)$1000
• C)$937.50
• D)impossible to determine without additional information

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Definitions:

U.S. Armed Services

The combined military forces of the United States, including the Army, Navy, Air Force, Marine Corps, and Coast Guard, responsible for defense and national security.

Military Draft

The compulsory enlistment of individuals into the armed forces by a government.

Political Rights

Rights that allow individuals to participate in the political life of a country or society, including the right to vote, freedom of speech, and the right to run for public office.

Drafted Percentage

The proportion of individuals selected from a larger group to serve, particularly in a military context.