If the Interest Rate of a One-Year Bond Is 15

question 47

Multiple Choice

If the interest rate of a one-year bond is 15% and its dollar price is $3,250,the face value of the bond is:

• A) $3,737.50.
• B) $2826.09.
• C) $373.75.
• D) $282.61.
• E) $3,350.00.

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Definitions:

Experiment

A procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Probability

A numerical expression between 0 and 1 that denotes the probability of a certain event happening.

King of Diamonds

A card in a standard deck of playing cards, representing the king from the suit of diamonds.

Well-Shuffled Deck

A state of a deck of cards in which the order of the cards is randomized to such an extent that no discernible patterns exist, ensuring fair play.