A Corporate Bond Makes Payments of $9

question 64

Multiple Choice

A corporate bond makes payments of $9.67 every month for ten years with a final payment of $2009.67. Which of the following best describes this bond?

• A) a 10-year bond with a face value of $2,000 and a coupon rate of 4.8% with monthly payments
• B) a 10-year bond with a face value of $2,000 and a coupon rate of 5.8% with monthly payments
• C) a 10-year bond with a face value of $2,009.67 and a coupon rate of 4.8% with monthly payments
• D) a 10-year bond with a face value of $2,009.67 and a coupon rate of 5.8% with monthly payments

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Definitions:

Price of Food

The cost at which food items are sold, determined by various factors including supply, demand, production costs, and market conditions.

Price of Clothing

Refers to the amount of money required to purchase clothing items, which can vary based on brand, quality, demand, and other factors.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at set prices.

Price of Food

The amount of money required to purchase food items in the market, which can vary based on factors like quality, demand, and supply.