A $1,000 Par Value Bond Is Currently Valued at $1,033

question 15

Multiple Choice

A $1,000 par value bond is currently valued at $1,033.53. The bond pays interest semi-annually, has 6 years to maturity, and has a yield to maturity of 7.3 percent. The coupon rate is _____ percent and the current yield is _____ percent.

• A) 6.80; 7.21
• B) 8.00; 7.74
• C) 8.00; 7.81
• D) 8.50; 8.22
• E) 8.50; 8.30

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Definitions:

Anergia

A state of reduced energy or enthusiasm, often seen in depressive conditions.

Anhedonia

The inability to feel pleasure in normally pleasurable activities, often a symptom of depression or other mental health disorders.

Psychomotor Retardation

A slowing-down of thought and a reduction of physical movements in an individual, often observed in major depressive disorders.

Guilty Ruminations

Obsessive thoughts focused on guilt over actions taken or not taken, often contributing to emotional distress.