A 10-Year Bond Pays 5% on a Face Value of $1,000

question 112

Multiple Choice

A 10-year bond pays 5% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond? Use annual analysis.

• A) Less than $900
• B) More than $900 and less than $1100
• C) More than $1100
• D) Not enough information to tell

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Definitions:

Bipolar Disorder

Bipolar Disorder is a mental health condition characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Socially Withdrawn

A behavioral condition where an individual prefers to avoid social interactions or activities, often due to anxiety, fear, or personal preference.

Irritated

Feeling annoyance or discomfort, often as a response to a minor inconvenience or annoyance.

Cyclothymic Disorder

Cyclothymic disorder is a mood disorder characterized by periods of hypomanic symptoms as well as periods of depressive symptoms that are not severe enough to qualify as bipolar disorder.