When an Investor Purchases a $1,000 Par Value Bond That

question 51

Multiple Choice

When an investor purchases a $1,000 par value bond that was quoted at 97.16,the investor:

• A) receives 97.5% of the stated coupon payments.
• B) receives $975 upon the maturity date of the bond.
• C) pays 97.5% of face value for the bond.
• D) pays $1,025 for the bond.

---

Definitions:

Hiring Capital

The resources, often financial, that an organization allocates to the process of recruiting and acquiring new employees or talent.

Future Profits

Expected gain in financial terms that a business anticipates receiving over a forthcoming period, based on current strategies, market conditions, and operations.

Hiring Labor

The process of finding, evaluating, and employing individuals to work for a business or organization.

Payment Stream

A sequence of payment installments made over a period of time, often associated with loans or annuities.