Suppose Matt's New Cars Issues and Sells a One-Year Discount

question 104

Multiple Choice

Suppose Matt's New Cars issues and sells a one-year discount bond for $9,259 and repays $10,000 at maturity.The interest rate on this bond would be

• A) 2.6%.
• B) 7.41%.
• C) 8%.
• D) 10%.

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Definitions:

Order

The arrangement or sequence of elements or events in a particular way.

Outlier

An observation in a data set that is distant from other observations, often indicating a measurement error or a unique phenomenon.

Mode

The most prevalent figure found in a group of data points.

Central Tendency

A measure that represents the center or typical value in a dataset, commonly understood through mean, median, and mode.