Compute the Present Value of a Perpetual Bond That Pays

question 100

Multiple Choice

Compute the present value of a perpetual bond that pays a monthly cash flow of $1,000 at an annual interest rate of 12 percent.

• A) $8,333.33
• B) $9,333.33
• C) $100,000
• D) $101,000

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Definitions:

Apprehensive

Feeling anxious or fearful that something bad or unpleasant will happen.

Cognitive Influences

The impact of perception, memory, and judgment on an individual's learning and behavior.

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear, impacting an individual's ability to lead a normal life.

Hypervigilance

Describes an enhanced state of sensory sensitivity accompanied by an exaggerated intensity of behaviors whose purpose is to detect threats.