You Have Purchased a U

question 152

Multiple Choice

You have purchased a U.S.Treasury bond for $3, 000.No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5, 000.What interest rate will you earn on this bond?

• A) 3.82%
• B) 4.25%
• C) 4.72%
• D) 5.24%
• E) 5.77%

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Definitions:

Elite Theory

Holds that small groups occupying the command posts of America’s most influential institutions make the important decisions that profoundly affect all members of society. Moreover, they do so without much regard for elections or public opinion.

High-Status Groups

High-status groups refer to social groups that are considered superior within a society due to certain attributes like wealth, power, or prestige.

Democratic Politics

A political system in which power is practiced directly by the people or through elected representatives, characterized by free and fair elections, rule of law, and protection of rights.

Market Economy

An economy in which the production and distribution of goods and services are determined by supply and demand, rather than state intervention.