If a Bond Sells for $2,000 and Pays $200 Per

question 164

Multiple Choice

If a bond sells for $2,000 and pays $200 per year in interest, the interest rate on the bond is

• A)20 percent.
• B)10 percent.
• C)5 percent.
• D)100 percent.

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Definitions:

Employee Morale

refers to the overall attitude, satisfaction, and outlook that employees have towards their work and workplace environment.

Product Quality

The degree to which a product or service meets the customer's expectations and complies with standards.

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used in capital budgeting to assess the profitability of investments.

Rate Of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.