A Bond with No Expiration Has an Original Price of $10,000

question 136

Multiple Choice

A bond with no expiration has an original price of $10,000 and a fixed annual interest payment of $1000.If the price of this bond decreases by $2000, the interest rate in effect will:

• A)decrease by 1.5 percentage points.
• B)decrease by 2.5 percentage points.
• C)increase by 1.5 percentage points.
• D)increase by 2.5 percentage points.

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Definitions:

Judging

The act of forming opinions or evaluations about something or someone, often involving critical assessments.

Threatening

Behaviors, actions, or statements intended to cause fear or apprehension in others, often as a means of controlling or influencing their actions.

Leading Question

A type of question that suggests a particular answer or is structured in such a way to guide the respondent's answer.

Treatment Center

A healthcare facility specialized in providing therapeutic interventions for various medical or psychological conditions.