A Bond That Pays a Yearly Interest Rate of $100

question 7

Multiple Choice

A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond was

• A) $1000 and now is $500.
• B) $1000 and now is $2000.
• C) $500 and now is $2000.
• D) $2000 and now is $1000.

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Definitions:

Formal Operational Stage

The fourth stage in Jean Piaget’s theory of cognitive development, typically beginning around age 11, marked by the ability to think abstractly and reason logically.

Concrete Operational

A stage in Piaget's theory of cognitive development where children ages 7-12 develop logical thinking but still struggle with abstract concepts.

Moral Reasoning

The process of determining right from wrong in a logical, systematic way, often based on ethical principles.

Automatic Feelings

Emotions or responses that occur without conscious thought, often as instinctive reactions to certain stimuli.