You Have Just Purchased a 10-Year,$1,000 Par Value Bond

question 95

Multiple Choice

You have just purchased a 10-year,$1,000 par value bond.The coupon rate on this bond is 8 percent annually,with interest being paid each 6 months.If you expect to earn a 10 percent simple rate of return on this bond,how much did you pay for it?

• A) $1,122.87
• B) $1,003.42
• C) $875.38
• D) $950.75
• E) $812.15

---

Definitions:

Pregnancy

The period of time during which a woman carries a developing embryo or fetus inside her uterus, typically lasting around 40 weeks from the last menstrual period.

Autism

A developmental disorder characterized by difficulties in social interaction, communication, and by restricted or repetitive patterns of thought and behavior.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.

Influenza

A highly contagious viral infection of the respiratory passages causing fever, severe aching, and often occurring in epidemics.