The Present Value of a $10,000, 5-Year Bond, Will Be

question 172

Multiple Choice

The present value of a $10,000, 5-year bond, will be less than $10,000 if the:

• A) stated interest rate is less than the market interest rate.
• B) stated interest rate is greater than the market interest rate.
• C) bond is convertible.
• D) stated interest rate is equal to the market interest rate.

---

Definitions:

Racketeer Influenced and Corrupt Organizations (RICO) Act

A United States federal law designed to combat organized crime by enabling the prosecution of criminal organizations for the actions of their members.

Wrongful Act

An action that is illegal or immoral, often leading to harm or injury to another and possibly resulting in legal liability.

Actus Reus

Latin for “guilty act”; a wrongful behavior that is associated with the physical act of a declared crime.

Guilty Act

Refers to the actus reus in criminal law, which is the physical act or unlawful omission leading to a crime.