The Going Rate of Interest on a 5-Year Treasury Bond

question 27

Multiple Choice

The going rate of interest on a 5-year treasury bond is 4.25%.You have one that will pay $2, 500 five years from now.How much is the bond worth today?

• A) $1, 928.78
• B) $2, 030.30
• C) $2, 131.81
• D) $2, 238.40
• E) $2, 350.32

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Definitions:

Brain

The central organ of the human nervous system, responsible for processing sensory information, and controlling thoughts, memories, emotions, and motor skills.

Hemisphere

Half of the terrestrial globe or celestial sphere, especially one of the halves into which the earth is divided, either north-south by the equator or east-west by a meridian.

Phencyclidine (PCP)

Substance that produces euphoria, slowed reaction times, and involuntary movements at low doses; disorganized thinking, feelings of unreality, and hostility at intermediate doses; and amnesia, analgesia, respiratory problems, and changes in body temperature at high doses.

Perceptual Changes

Alterations in the way an individual interprets or experiences sensory information.