You Are in Possession of a Bond That Has 3

question 20

Multiple Choice

You are in possession of a bond that has 3 years remaining to maturity.The original maturity on the bond was 30 years.The bond has a $1,000 face value and a 9% coupon rate.If interest is paid annually and bonds with similar risk currently have an interest rate of 10%,what is the current value of the bond?

• A) $906
• B) $975
• C) $1,000
• D) $1,025
• E) $1,103

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Definitions:

Systole

The phase of the heart cycle during which the heart muscles contract and pump blood from the chambers into the arteries.

Superior Vena Cava

The superior vena cava is a large vein that carries deoxygenated blood from the upper half of the body back to the heart.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, essential for maintaining the body's circulatory system.

Tourniquet

A device applied to a limb to apply pressure and restrict blood flow, commonly used to control bleeding during surgery or after injury.