If You Own a $1000 Face Value Bond with 1

question 74

Multiple Choice

If you own a $1000 face value bond with 1 year remaining to maturity and a 3 per cent interest rate,and new bonds are paying 14 per cent,what is the most you can get for your old bond?

• A) $903.51
• B) $997.19
• C) $1000
• D) $1140

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Definitions:

Guthrie

Edwin Ray Guthrie was an influential psychologist known for his theory that learning is largely a matter of contiguity or association between stimuli and responses.

Conditioning Trial

An instance in classical conditioning where the conditioned stimulus is presented with or just before the unconditioned stimulus, leading to learning.

Reward

An outcome or event that strengthens the likelihood of a behavior being repeated.

Food Pellets

Food pellets are often used as a positive reinforcement in animal studies, particularly in experiments involving operant conditioning.