Gwendolyn Francis Is Interested in Buying a Bond That Pays

question 116

Multiple Choice

Gwendolyn Francis is interested in buying a bond that pays $70 annually. The current price of the bond is $800. What is her current yield?

• A) 3.5%
• B) 4%
• C) 7%
• D) 8%
• E) 8.75%

---

Definitions:

Community Service Program

A program that involves voluntary work intended to help people in a particular area.

Financial Aid

Money provided to students to help pay for their education, which can come in the form of grants, scholarships, loans, and work-study programs.

Credit Hours

Units of academic credit that reflect the number of hours a student has engaged with a course each week over a semester.

Financial Aid

Assistance provided to students in the form of scholarships, grants, loans, or work-study programs, intended to support their education expenses.