If the Discount Rate on a Bond Is 5% and the Expected

question 5

Multiple Choice

If the discount rate on a bond is 5% and the expected payment in year 1 is $985,calculate the price of the bond.

• A)$1050.00
• B)$985.00
• C)$938.10
• D)$1,000

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Definitions:

Psychologist

A professional specializing in diagnosing and treating mental, emotional, and behavioral disorders.

Anxiety

A condition of uneasiness, worry, or fear, frequently focused on a near event or an outcome with uncertain implications.

Depression

A psychological health challenge defined by a permanent down mood or indifference to undertakings, greatly affecting daily performance.

Cognitive Therapy

A form of psychotherapy that focuses on changing negative thought patterns to improve behavior and emotions.