Calculate the Price at the Beginning of Year 1 of an 8

question 29

Multiple Choice

Calculate the price at the beginning of year 1 of an 8% annual coupon bond with face value $1,000 and 5 years to maturity.

• A)$1,105.47
• B)$1,131.91
• C)$1,084.25
• D)$1,150.01
• E)$719.75

---

Definitions:

Recency Effect

The tendency to remember the most recently presented information best.

Recall

The cognitive process of retrieving information from memory without much external cues.

List of Items

An ordered or unordered set of distinct objects or elements.

Farm Animals

Domesticated animals raised in an agricultural setting to produce commodities such as food, fiber, and labor.