Morgan Robbins, a Private Investor, Would Like to Purchase a Bond

question 12

Multiple Choice

Morgan Robbins, a private investor, would like to purchase a bond that has a par value of $1,000, pays $80 at the end of each year in coupon payments, and has 10 years remaining until maturity.If the prevailing annualized yield on other bonds with similar characteristics is 6 percent, how much will Mr.Robbins pay for the bond?

• A)$1,000.00
• B)$1,147.20
• C)$856.80
• D)none of the above

---

Definitions:

Neuroadaptation

The process by which the brain adjusts to changes in its environment, often in response to the repeated use of substances or in reaction to prolonged stress, which can affect behavior and perception.

Psychoactive Drug

A substance that influences brain activity, leading to changes in how one perceives reality, feels, or attains awareness.

Substance Use Disorder

A condition characterized by an uncontrollable use of substances despite harmful consequences.

Amphetamines

Stimulant drugs that enhance the central nervous system, used therapeutically for attention deficit hyperactivity disorder and narcolepsy, and illicitly for their euphoric effects.