You Have a Bond That Entitles You to a One-Time

question 127

Multiple Choice

You have a bond that entitles you to a one-time payment of $10,000 one year from now.The interest rate is 10 percent per year.How much is the bond worth today?

• A)$9,090.91
• B)$10,000.00
• C)$8,264.46
• D)$9,523.81

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Definitions:

Income

The money received by individuals or entities, typically in exchange for providing labor, selling goods, or making investments.

Substitute Goods

Products or services that can replace or be used in place of one another, having the ability to satisfy similar consumer needs or desires.

Iced Tea

A chilled beverage made by cooling brewed tea and typically served with ice, sometimes sweetened or flavored.

Complementary Goods

Products or services that are typically consumed together, such that demand for one increases demand for the other.