Calculate the Cash Value of a Bond That Will Mature

question 33

Multiple Choice

Calculate the cash value of a bond that will mature with a value of $16 500 in 7 years and 5 months. The bond is discounted at 5.8% compounded semi-annually.

• A) $10 797.48
• B) $10 979.48
• C) $10 997.48
• D) $10 779.48
• E) $11 117.48

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Definitions:

Poly (vinyl Acetate)

A polymer made by polymerizing vinyl acetate, used in adhesives, paints, and various coatings.

Repeating Units

Sequential segments of the same structure in a polymer, which repeat numerous times to form the polymer chain.

Mechanism

Describes the step-by-step process through which reactants are converted to products in a chemical reaction, including the breaking and formation of bonds.

Intermediates

Molecules or ions that appear in the middle stages of a chemical reaction but do not appear in the overall reaction equation.