A Bond Promises to Pay $1,000 20 Years from Today

question 68

Multiple Choice

A bond promises to pay $1,000 20 years from today.No interest will be paid on the bonds during the 20 years If the interest rate is 7%,what is the bond's present value?

• A) $50
• B) $258.42
• C) $629.56
• D) $1,000

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Definitions:

Scientific Revolution

A period of profound change in the 16th and 17th centuries during which modern science emerged through developments in mathematics, physics, astronomy, biology, and chemistry.

Symbolic Interactionist

A theoretical perspective in sociology that focuses on how individuals interpret and assign meaning to social symbols, and how this shapes social interaction.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist who developed the theory of Marxism, focusing on class struggle and the need for a proletariat revolution.

Sociological Imagination

The ability to see the relationship between individual experiences and the larger society.