Calculate the Value of a $1,000 Bond Which Has 10

question 107

Multiple Choice

Calculate the value of a $1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent. The required return on similar-risk bonds is 20 percent.

• A) $656.82
• B) $835.45
• C) $845.66
• D) $2,201.08

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Definitions:

Kilocalorie

A unit of energy often used in nutrition to quantify the energy content in food, equivalent to 1,000 calories.

Essential Nutrient

Nutrients required for normal body functioning that cannot be synthesized by the body and must be obtained from the diet.

Calories

A unit of energy that measures the amount of energy food provides to the body.

Alcohol

A psychoactive substance found in beverages such as beer, wine, and spirits, which can influence mood and behavior and affect physical health.