A Person Buys a Bond with a Face Value of $10,000

question 56

Multiple Choice

A person buys a bond with a face value of $10,000 for $9,325.Each year until the maturity date the bond buyer receives $750 from the issuer of the bond.The yield on the bond is

• A) 8.04 percent.
• B) 7.5 percent.
• C) 10.0 percent.
• D) 6.75 percent.
• E) There is not enough information to answer the question.

---

Definitions:

-tripsy

A suffix used in medical terms to denote the surgical crushing of a stone or calculus.

-ectomy

A suffix used in medical terminology to indicate the surgical removal of a specified part of the body.

-uria

A suffix used in medical terminology to describe conditions related to urine, such as polyuria (production of a large volume of urine) or hematuria (presence of blood in urine).

-itis

Refers to inflammation or infection of a part of the body.