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

---

Definitions:

Tire Pressure Control Systems

Automotive systems designed to monitor and adjust the air pressure inside vehicle tires, enhancing performance and safety.

Reduced Tire Costs

Reduced Tire Costs involve strategies or practices aimed at lowering the expenses associated with purchasing, maintaining, and replacing vehicle tires, potentially through better management, purchasing deals, or technology.

Retrofit

To modify a system to adapt to changes made after its manufacture.