A Bond Has a Face Value of $10,000,a Price of $12,000,and

question 30

Multiple Choice

A bond has a face value of $10,000,a price of $12,000,and coupon payments of $2000 for two years.The current yield of this bond is

• A)10%.
• B)16.7%.
• C)20%.
• D)30%.
• E) none of the above

---

Definitions:

Price Elasticity

An indicator of how the amount of a product that is bought or provided reacts to variations in its cost.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a particular period.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage.

Electricity Consumption

The amount of electrical energy used by households, businesses, and industries over a certain period, typically measured in kilowatt-hours (kWh).