If You Own a $1000 Face Value Bond with One

question 109

Multiple Choice

If you own a $1000 face value bond with one year remaining to maturity and a 5 per cent coupon rate,and new bonds are paying 12 per cent,what is the most you can get for your old bond?

• A) $1120
• B) $1000
• C) $937.50
• D) Impossible to determine without additional information

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Definitions:

Self-Understanding

The awareness or knowledge an individual has about themselves, including their strengths, weaknesses, thoughts, beliefs, motivation, and emotions.

Integrity

The quality of being honest and having strong moral principles.

Synthesizing Mind

The ability to integrate ideas from different sources into coherent understandings, often associated with creativity and critical thinking.

Gardner

A reference to Howard Gardner, an American developmental psychologist known for his theory of multiple intelligences.