Four Years After It Was First Issued at 6% Compounded

question 32

Multiple Choice

Four years after it was first issued at 6% compounded semi-annually, a 25-year, $10,000 strip bond was sold on the bond market at a price that would provide the purchaser with a yield rate of 4.8% compounded semi-annually. What was the selling price at that time?

• A) $2,281
• B) $2,667
• C) $2,890
• D) $3,693
• E) $3,736

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Definitions:

Stress

The physiological reaction to stimuli or stressors, whether they're of a physical, mental, or emotional nature.

Paraphilia

A condition characterized by abnormal sexual desires that involve extreme or atypical scenarios.

Sexually Aroused

The physical and psychological state of excitement and responsiveness to sexual stimuli, often characterized by increased heart rate, blood flow, and erection or lubrication.

Simultaneous

Occurring, conducted, or accomplished at the same time.