If the Interest Rate of a One-Year Bond Is 10

question 86

Multiple Choice

If the interest rate of a one-year bond is 10% and its face value is $5,000,the dollar price of the bond is:

• A) $5,000.00.
• B) $5,500.00.
• C) $4,545.45.
• D) $5,250.50.
• E) $454.00.

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Definitions:

Decomposer

Organisms, typically bacteria and fungi, that break down dead or decaying organisms, thereby playing a key role in the nutrient cycle.

Saccharomyces

A genus of fungi that includes many yeast species, widely used in baking, brewing, and wine-making.

Arbuscular Mycorrhizae

A type of symbiotic relationship between plants and fungi, where the fungus invades the plant roots to enhance nutrient and water absorption.

Endomycorrhizae

A type of mycorrhiza in which the fungus penetrates the cortical cells of the roots of a vascular plant, enhancing nutrient exchange.