The Following Information for a Bond Having No Expiration Date

question 123

Multiple Choice

The following information for a bond having no expiration date: bond price = $1,000;bond fixed annual interest payment = $100;bond annual interest rate = 10 percent.
-Refer to the above information.If the price of this bond increases to $1,250,the interest rate in effect will:

• A) fall to 9 percent.
• B) fall to 8 percent.
• C) rise to 11 percent.
• D) rise to 12 percent.

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Definitions:

Infants

Young children from birth to one year of age, characterized by rapid physical and cognitive development.

Sweet

A taste sensation often associated with sugar and characterized by a pleasurable flavor.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the effects of external stimuli on subsequent behavior.

Positive Reinforcement

A psychological concept involving the addition of a reward following a desired behavior, encouraging its future occurrence.