If Interest Rates in the Overall Economy Increase to 8

question 82

Multiple Choice

If interest rates in the overall economy increase to 8 percent,which one of the following is most likely to be the approximate market value of a $1,000 corporate bond with a fixed interest rate of 7 percent? Round to the nearest hundred.

• A)$0
• B)$1,100
• C)$900
• D)$1,000
• E)$1,300

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Definitions:

Kilometers

A unit of length in the metric system equal to 1,000 meters, commonly used to measure distances between geographical locations.

Miles

A unit of distance measurement in the Imperial system, equal to 1.609 kilometers.

Kilometers Per Hour (Kmph)

A unit of speed or velocity in the metric system, measuring the number of kilometers traveled in one hour.

Miles Per Hour (Mph)

A unit of speed expressing the number of miles traveled in one hour.