The Price of a Bond Having No Expiration Date Is

question 52

Multiple Choice

The price of a bond having no expiration date is originally $10 000 and has a fixed annual interest payment of $1000.A change in the interest rate to 6.67 percent will result in a bond price of:

• A)$16 667
• B)$6667
• C)$10 000
• D)$15 000
• E)$3333

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Definitions:

Listening

The active process of receiving, comprehending, and responding to spoken or non-verbal messages.

Recommended

Suggested or advised as a course of action or to be suitable based on certain qualifications or conditions.

Counting To Ten

A technique used to promote calmness and emotional control by pausing and counting slowly to ten before reacting.

Old Technique

Describes a method or approach that has been used for a long time, often replaced by newer methods but still valued for certain applications.