What Is the Value of a Bond That Has a Par

question 76

Multiple Choice

What is the value of a bond that has a par value of $1,000,a coupon rate of $80 (annually) ,and matures in 11 years? Assume a required rate of return of 11%,and round your answer to the nearest $10.

• A)$320
• B)$500
• C)$810
• D)$790

---

Definitions:

Preschool Children

Refers to young children, typically ages 3 to 5, who are in the early childhood phase, prior to entering kindergarten.

Cognitive Development

This refers to the growth and change in mental skills and functions throughout a person's life.

Egocentric Thought

Thinking that is centered on oneself and unable to understand the perspective of others.

Preoperational Stage

A developmental phase, according to Jean Piaget's theory, where children aged 2 to 7 years engage in symbolic play and struggle with logic and taking the perspective of others.