$\text { Suppose you buy an inflation-indexed bond that will adjust with inflation and thus pay you } \$ 1,500 \text { in real (inflation- }$

question 4

Multiple Choice

$\text { Suppose you buy an inflation-indexed bond that will adjust with inflation and thus pay you } \$ 1,500 \text { in real (inflation- }$ adjusted) terms in one year.The nominal interest rate is 4 percent and the expected inflation rate is 2 percent.What is the present value of the bond? (Round off your answer to the nearest dollar and pick the answer closest to the one you calculate.)

• A)$1,415
• B)$1,442
• C)$1,471
• D)$1,530

Understand the importance of tailoring sales presentations to the customer's specific needs and buying process.

Recognize the role of effective communication and listening skills in addressing customer reservations and building relationships.

Comprehend the significance of demonstrating service quality dimensions (reliability, responsiveness, assurance, empathy, tangibles) to foster customer loyalty and renewals.

Acquire knowledge on the impact of salesperson behaviors and attitudes on customer perceptions and satisfaction.

---

Definitions:

Interest-Sensitive Securities

Financial instruments whose value and yield are heavily influenced by fluctuations in interest rates.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of the company's shares at specific times during their life, usually at the discretion of the bondholder.

S&P 500 Index

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

S&P 500 Future

A futures contract that bets on the future value of the S&P 500 index, a major American stock market index.