USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 68

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
XLR Corporation just issued a $1,000 par value bond with a 7 percent yield to maturity, twenty years to maturity, with an 8 percent semi-annual coupon rate.
-Refer to Exhibit 12.2. If market interest rates are constant, what will the price of the XLR Corporate bond be in three years?

• A) $904.29
• B) $1,097.63
• C) $1,098.50
• D) $1,102.85
• E) $1,105.62

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Definitions:

Primacy Effect

Refers to the tendency for the first items presented in a series to be remembered more easily or to be more influential than subsequent items.

Interviewers

Individuals who conduct interviews, asking questions to evaluate the qualifications and suitability of candidates for a position or purpose.

Primacy Effect

The tendency to remember and emphasize the first pieces of information encountered about a topic, person, or situation.

Recency Effect

The psychological phenomenon where the most recently presented information or experiences are easier to remember than older information.