A 75 Percent Coupon Bond Is Currently Quoted at 89

question 20

Multiple Choice

A 7.5 percent coupon bond is currently quoted at 89.3 and has a face value of $1,000.What is the amount of each semi-annual coupon payment if you own three (3) of these bonds?

• A)$56.25
• B)$75.00
• C)$100.46
• D)$112.50
• E)$200.93

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Definitions:

Incentive Theories

Theories in psychology focused on understanding how external rewards motivate behaviors and drive human actions.

Drive Theories

Psychological theories suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Motivation

The psychological factors or driving forces that compel or prompt an individual to act in a certain manner.

Homeostatic

Pertaining to homeostasis, which is the process by which living organisms maintain a stable internal environment despite changes in external conditions.