If You Own a $1,000 Face Value Bond with One

question 128

Multiple Choice

If you own a $1,000 face value bond with one year remaining to maturity and a five percent coupon rate and new bonds are paying 12 percent, what is the most you can get for your old bond?

• A)$1,120
• B)$1,000
• C)$937.50
• D)impossible to determine without additional information

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Definitions:

Neuropsychological Assessment

The evaluation of brain functions through tests that measure cognitive, motor, behavioral, and linguistic skills, often used to diagnose neurological conditions.

Mental Ability

The capacity to perform cognitive tasks and solve problems, often evaluated through IQ tests and other assessments.

Vocations

Occupations or professions, especially ones for which individuals are trained or feel a strong calling.

Learning Disabilities

Neurologically-based processing problems that interfere with learning basic skills and/or processing information.