A Bond That Matures in One Year Has a $500

question 38

Multiple Choice

A bond that matures in one year has a $500 face value and a $60 coupon What is the price of the bond if the interest rate is 6 percent and the bond was purchased by the present owner for $450?

• A)$103.77
• B)$481.13
• C)$528.30
• D)$500
• E)$1,000

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Definitions:

Senators

Members of the senate, the upper chamber of the legislature in various countries, responsible for making and passing laws.

Senate President Pro Tempore

A senior member of the majority party in the U.S. Senate who presides over the Senate in the absence of the Vice President.

Majority And Minority Leaders

The elected leaders of the party with the most seats and the party with the second most seats in a legislative body, respectively.

House Ways And Means Committee

The House Ways and Means Committee is a key committee in the United States House of Representatives that is responsible for overseeing taxation, tariffs, and other fiscal policies.