If a Freely Falling Object Were Equipped with a Speedometer

question 3

Multiple Choice

If a freely falling object were equipped with a speedometer on a planet where the acceleration due to gravity is 20 m/s², then its speed reading would increase each second by

• A)10 m/s.
• B)20 m/s.
• C)30 m/s.
• D)40 m/s.
• E)depends on its initial speed

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Definitions:

Zero Coupon Bond

A debt security that does not pay periodic interest (coupon) payments and is instead issued at a substantial discount to its face value, with the return being the difference between the purchase price and the face value at maturity.

Current Yield

The current yield is a financial metric that calculates the annual income (interest or dividends) an investment generates, divided by its current price.

Yield to Maturity

The complete yield expected from a bond assuming it is retained until it matures.

Yield to Call

The rate of return anticipated on a bond if it is held until the call date, which is before the bond's maturity, including all interest payments and the call price.