A 30-Year, Government of Canada $10,000 Strip Bond Was Discounted

question 125

Multiple Choice

A 30-year, Government of Canada $10,000 strip bond was discounted at 4.9% compounded semi-annually and traded for $4,722. How many years earlier had the bond been issued?

• A) 14.5 years
• B) 15.0 years
• C) 15.5 years
• D) 29.0 years
• E) 30.0 years

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Definitions:

Restless

Experiencing difficulty resting, relaxing, or staying still, often due to anxiety, discomfort, or other underlying conditions.

Adequate Amounts

Sufficient quantities or volumes necessary to meet a specific need, standard, or requirement.

Legibly

In a manner that is clear enough to read, often referring to handwriting or printing.

Belligerent

Exhibiting aggressive or combative behavior.