What Is the Current Price of a Debenture with a $500

question 78

Multiple Choice

What is the current price of a debenture with a $500 000 face value,a coupon rate of 9.5% paid semi-annually,six years remaining to maturity and market interest rates increased to 14%?

• A) $320 149.12
• B) $401 613.48
• C) $410 644.78
• D) $688 638.80

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Definitions:

Sociocultural

Pertaining to the combination of social and cultural factors that influence an individual's behaviors, attitudes, and perceptions.

Obsessive-compulsive Disorder

A mental disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions).

Drug Therapies

The treatment of disease or disorders through the administration of pharmaceutical drugs.

Cognitive-behavioral Therapy

A psychological treatment approach that helps individuals recognize and change negative thoughts and behaviors to improve mental health.