A $1,000 Face Value Bond Is Currently Quoted at 100

question 42

Multiple Choice

A $1,000 face value bond is currently quoted at 100.8.The bond pays semiannual payments of $22.50 each and matures in six years.What is the coupon rate?

• A)2.72 percent
• B)2.85 percent
• C)4.46 percent
• D)2.25 percent
• E)4.50 percent

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Definitions:

Covert Observation

Observational research in which the subject(s) are unaware that they are being observed, often used to gather more natural behavior data.

Environment

The surrounding physical, biological, and socioeconomic conditions and factors that influence the growth, development, and survival of organisms and human communities.

Personality

A set of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.

Norms

Unwritten rules and standards that govern the behavior of individuals within a group or society, guiding what is considered acceptable or unacceptable.