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:

Service Branding

The process of creating a unique identity and image for a service, differentiating it from competitors and embedding it in the minds of consumers.

Ethnocentricity

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a dismissive or derogatory view towards other cultures.

Reverse Marketing

A strategy where the consumers' needs drive the marketing process, and companies aim to satisfy those needs rather than pushing products.

Load Factor

In the context of transportation, it is the ratio of passenger-kilometers traveled to the total capacity available, or in energy, it is the ratio of actual energy used to the potential energy that could be used over a specific period.