If Comparable Bonds Are Paying 7 Percent and the Approximate

question 21

Multiple Choice

If comparable bonds are paying 7 percent and the approximate market value of a $1,000 bond is $1,286,then what is the semiannual interest on the bond?

• A)$45
• B)$90
• C)$100
• D)$70
• E)$35

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Definitions:

Percent Increase

The ratio of the increase in value to the original value, expressed as a percentage.

Base Value

The initial point of reference for measuring changes or calculations, such as a starting level in financial indices or a fixed value in property assessments.

Percent Decrease

A measure of the reduction in amount or size of something expressed as a percentage.

Base Value

A reference point or initial value used in financial calculations, indexes, or for measuring changes in economic indicators.