USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 79

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You are creating a portfolio that consists of the following two bonds. Bond A pays an annual 7 percent coupon, matures in two years, has a yield to maturity of 8 percent, and a face value of $1,000. Bond B pays an annual 8 percent coupon, matures in three years, has a yield to maturity of 9 percent, and a face value of $1,000.
-Refer to Exhibit 13.14. Calculate the price of Bond A.

• A) $975.62
• B) $982.17
• C) $990.57
• D) $1,009.50
• E) $1,018.08

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Definitions:

Population Growth Models

Mathematical formulations that describe how populations change in size and composition over time, factoring in births, deaths, immigrations, and emigrations.

Extinction Rate

The rate at which species become extinct over a certain period of time, an important measure in the study of biodiversity and conservation biology.

Biogeographic Province

A region defined by its climatic and geographical features, harboring a distinct set of flora and fauna.

Neotropical Region

A biogeographic region that includes South and Central America, the Mexican lowlands, the Caribbean islands, and southernmost parts of Florida, characterized by its distinct fauna and flora.