A Three-Year 9% Bond Is Trading at Par of $5,000

question 36

Multiple Choice

A three-year 9% bond is trading at par of $5,000. If you buy the bond expecting to hold it to maturity and believe you can reinvest the $225 semi-annual coupon payments at a 3.5% semi-annual rate through maturity. The total return on this investment is _____ annually.

• A) 3.50%
• B) 4.50%
• C) 7.00%
• D) 8.80%
• E) 9.00%

Understand the roles and restrictions of paralegals in preparing legal letters.

Recognize the importance of including specific elements (date, address, salutation) in legal correspondence for its validity.

Learn the format and essential inclusions in an internal legal memorandum.

Acknowledge the significance of providing a balanced overview of client positions, including strengths and weaknesses.

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Definitions:

Assimilation

The process by which individuals or groups integrate and adapt to the culture or norms of another group or society.

Accommodation

In cognitive psychology, the process by which individuals adjust their schemas to incorporate new information.

Equilibrium

A state of balance or stability within a system, where all forces acting on the system are canceled out by each other.

Sex-limited

Traits or characteristics that are expressed in only one sex, even though the genes for these traits might exist in both sexes.