If a Corporate Bond with a Face Value of $1,000

question 76

Multiple Choice

If a corporate bond with a face value of $1,000 pays yearly coupon payments of $40,what is the coupon rate?

• A)2.5%
• B)4%
• C)25%
• D)40%

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Definitions:

Uplift

The geological process of rising segments of the Earth's crust, contributing to mountain formation and changes in topography.

Sierra Nevada Batholith

A large mass of igneous rock, primarily granite, located in the Sierra Nevada range, formed by the cooling of magma beneath the Earth's surface.

Ocean-Continent Convergence

A tectonic plate boundary situation where an oceanic plate is forced underneath a continental plate, often causing volcanic and seismic activity.

Continental Rifting

The process by which a continent stretches and splits along a rift zone, forming a new ocean basin.