If Chris Pays $500 for a Bond That Will Return

question 78

Multiple Choice

If Chris pays $500 for a bond that will return $750 in one year,what is the interest rate?

• A) 50 percent
• B) 10 percent
• C) 25 percent
• D) 250 percent
• E) 33 percent

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Definitions:

Maximum Price

The highest price that a buyer is willing to pay or that a seller is willing to accept for a good or service.

Pump Division

A specialized business segment within a company that focuses on the development, manufacturing, and sales of pumps and related products.

Valve Division

A segment or branch within a company that focuses on the production, development, or sale of valves.

Transfer Price

The internal charge assigned to the exchange of goods or services between the departments or divisions of the same organization, affecting both profitability and tax liabilities.