A Bond Pays 7% Yearly Interest in Semi-Annual Payments for 10

question 3

Multiple Choice

A bond pays 7% yearly interest in semi-annual payments for 10 years. The current yield on similar bonds is 9%. To determine the market value of this bond, you must

• A)find the interest factors (IFs) for 20 periods at 9%.
• B)find the interest factors (IFs) for 10 periods at 7%.
• C)find the interest factors (IFs) for 10 periods at 4.5%.
• D)find the interest factors (IFs) for 20 periods at 4.5%.

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Definitions:

Concrete Operational

A stage in Piaget's theory of cognitive development where children (ages 7-11) can think logically about concrete events.

Formal-Operational

Formal-operational stage is a phase in Piaget's theory of cognitive development when individuals gain the ability to think abstractly, logically, and systematically.

Intuitive Stage

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 4 and 7, where children start using intuition and perception but lack logical reasoning.

Concrete-Operational Stage

A phase in cognitive development, identified by Jean Piaget, where children begin to understand concrete, logical operations and can solve problems with physical objects.