Gwendolyn Francis Is Interested in Buying a Bond That Pays

question 116

Multiple Choice

Gwendolyn Francis is interested in buying a bond that pays $70 annually. The current price of the bond is $800. What is her current yield?

• A) 3.5%
• B) 4%
• C) 7%
• D) 8%
• E) 8.75%

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Definitions:

Quadratic Functions

Mathematical functions of the form f(x)=ax^2+bx+c, where a, b, and c are constants and a ≠ 0.

Parabolic Graphs

Graphical representations of quadratic functions that display a symmetrical, curved shape similar to an arch.

Sporting Events

Scheduled competitions in various sports where athletes participate to determine a winner.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.