A 20-Year Bond Pays 9% on a Face Value of $1,000

question 25

Multiple Choice

A 20-year bond pays 9% on a face value of $1,000. If similar bonds are currently yielding 6%, what is the market value of the bond? Use annual analysis. Use time value of money tables in Appendix B and Appendix D.

• A) Under $1,300
• B) Exactly $1,000
• C) Over $1,300
• D) Not enough information is given to tell.

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Definitions:

Big Five

A model outlining five broad personality traits used to describe human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Sales Representative

A professional responsible for selling products or services, often directly to customers or through intermediary businesses.

Emotional Disposition

The inherent or habitual inclination of an individual to experience and express emotions in specific ways.

Positive Affectivity

Propensity to view the world, including oneself and other people, in a positive light.