A 20-Year Bond Pays 6% on a Face Value of $1,000

question 78

Multiple Choice

A 20-year bond pays 6% on a face value of $1,000. If similar bonds are currently yielding 5%, what is the market value of the bond? Use annual analysis.

• A) Over $1,100
• B) Under $1,000
• C) Under $900
• D) Not enough information given to tell

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Definitions:

Reflex Arc

The neural pathway that mediates a reflex action, involving sensory receptors, neural pathways, and effectors.

Neural Pathway

Networks of neurons transmitting signals from one part of the brain or spinal cord to another, coordinating body functions.

Skeletal Muscles

Voluntary, striated muscles that are attached to bones by tendons and facilitate movement.

Reflexes

Involuntary and nearly instantaneous movements in response to a stimulus, serving as a protective mechanism for the body.