A 25-Year,$1,000 Par Value Bond Has an 8

question 4

Multiple Choice

A 25-year,$1,000 par value bond has an 8.5% annual coupon.The bond currently sells for $875.If the yield to maturity remains at its current rate,what will the price be 5 years from now?

• A)$839.31
• B)$860.83
• C)$882.90
• D)$904.97

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Definitions:

Continually Agitated

Persistently in a state of nervousness or unrest, often without a pause.

Generalized Anxiety Disorder

A psychological disorder characterized by persistent and excessive worry about various aspects of daily life, beyond the normal anxiety people experience day to day.

Nervous

Experiencing or showing feelings of anxiety or tension.

Tense

Describes a state of mental or emotional strain, often characterized by feelings of anxiety, stress, or agitation.