You Purchase an 8 1/2s February $10,000 Par Treasury Note

question 36

Multiple Choice

You purchase an 8 1/2s February $10,000 par Treasury note at 105:16 and hold it for exactly one year at which time you sell it. What is your rate of return if your selling price is 105:16?

• A) 8.00 percent
• B) 8.06 percent
• C) 8.22 percent
• D) 8.50 percent
• E) 8.47 percent

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Definitions:

Cavity

A hole or space within the body or a solid structure, often referring to tooth decay in dentistry or a hollow area in anatomy.

Femur

The thigh bone, which is the longest, strongest, and heaviest bone in the human body, connecting the hip to the knee.

Cancellous Bone

A type of porous bone found at the end of long bones and in the inner layers of other bones, also known as spongy bone.

Compact Bone

The dense, hard outer layer of bone that provides strength and structure.