A $1,000 Par Value Bond Is Currently Priced at $992

question 49

Multiple Choice

A $1,000 par value bond is currently priced at $992. It has a coupon rate of 7.5 percent and pays interest semiannually on January 1 and July 1. What is the dirty price of this bond as of May 1? Assume a 360-day year.

• A) $1,000.00
• B) $1,022.00
• C) $1,012.00
• D) $1,032.00
• E) $1,042.00

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Definitions:

Behavior

Behavior refers to the actions and mannerisms made by individuals, organisms, systems, or artificial entities in conjunction with their environment.

Psychodynamic

A psychological theory or approach that emphasizes the interplay between unconscious drives and early life experiences in shaping personality and behavior.

Aversion Conditioning

A method of behavioral therapy that involves pairing an undesirable behavior with an unpleasant stimulus to reduce the frequency of the behavior.

Electric Shock

The sudden stimulation of nerves and muscles produced by an external electric current, potentially causing harm or discomfort.