A Bond Has a $1000 Face Value,a Market Price of $1036,and

question 16

Multiple Choice

A bond has a $1000 face value,a market price of $1036,and pays interest payments of $70 every year.What is the coupon rate?

• A)7.00 per cent
• B)14.00 per cent
• C)13.51 per cent
• D)6.76 per cent
• E)7.12 per cent

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Definitions:

Executive Branch

The division of government responsible for implementing and enforcing laws, headed by the president or prime minister.

Legislative Branch

A part of a government responsible for making laws, often comprising a parliament or congress, divided into two houses in some countries.

Reconstruction

The period following the Civil War from 1865 to 1877 in the United States, aimed at rebuilding the South and integrating freed slaves into society.

Constitutional Amendment

A modification or change to the Constitution, which is the supreme law of the land, requiring a rigorous process for adoption that often reflects significant shifts in societal values or governance.