A Few Years Ago, You Bought a Bond with No

question 15

Multiple Choice

A few years ago, you bought a bond with no expiration and a fixed annual interest payment of $1000 at a price of $10,000. If the interest rate in the economy is now 12.5% a year and you want to sell the bond, the maximum price that you can get for it is:

• A) $7,500
• B) $8,000
• C) $9,750
• D) $12,500

---

Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of goods or services.

Bottom-up Change

A change strategy where ideas and initiatives originate from lower-level employees and move upward through the organizational hierarchy.

Top-down Change

What occurs when change initiatives come from senior management.

Incremental Change

Gradual, step-by-step modifications or improvements made to processes, systems, or products over time, rather than dramatic or radical transformations.