Which of the Following Amounts Is Closest to the Value

question 80

Multiple Choice

Which of the following amounts is closest to the value of a bond that pays $75 semiannually and has an effective semiannual interest rate of 7%? The face value is $1,000 and the bond matures in 7 years.There are exactly six months before the first interest payment.

• A)$859
• B)$1,000
• C)$1,044
• D)$1,139
• E)$1,464

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Definitions:

Automatic Stay

A legal provision in bankruptcy law that temporarily halts lawsuits, foreclosures, garnishments, and all collection activities against the debtor the moment a bankruptcy petition is filed.

Discharged Obligations

Responsibilities, debts, or legal duties that have been fulfilled or otherwise legally terminated.

Substantial Abuse

Substantial Abuse refers to severe misuse or mistreatment, often in a context where one party exploits their power over another in a harmful manner.

Chapter 7

is a provision in the U.S. Bankruptcy Code that allows for the liquidation of a debtor's assets to pay off creditors as part of a bankruptcy proceeding.