What Is the Approximate Market Value for of a $1,000

question 56

Multiple Choice

What is the approximate market value for of a $1,000 corporate bond that pays 9 percent interest when comparable bonds are paying 8 percent?

• A) $800
• B) $900
• C) $1,000
• D) $1,125
• E) $1,600

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Definitions:

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Leap Years

Years that include an extra day (February 29) to keep the calendar year synchronized with the astronomical year.

Leap Years

Years with an extra day (February 29) added to keep the calendar year synchronized with the astronomical year or seasonal year.

Interest Computation

The process of calculating the interest due on a loan, based on the principal, interest rate, and time.