With a 10% Discount Rate,the Present Value Factors of $1

question 105

Multiple Choice

With a 10% discount rate,the present value factors of $1 received at the end of each of the next three years are 0.909,0.826,and 0.751,respectively.Given these values,the present value of a $1,000 (par) ,3-year corporate bond with an 8% coupon rate is

• A)$949.88.
• B)$1,1198.88.
• C)$198.88.
• D)$751.00.

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Definitions:

Subduction Zone

A region of the Earth's crust where one tectonic plate moves under another, leading to volcanic activity and earthquakes.

Arc

A continuous portion of a circle or other curved line, or in geological terms, a curved series of volcanic islands that form above a subducting plate.

Tectonic Terrane

A fault-bounded body of rock that has a different geologic history than adjacent regions.

Horst and Graben

Geological structures where a horst is a raised block of the earth's crust bordered by faults, and a graben is a lowered block of the earth's crust bordered by parallel faults.