Question
9. Interest payments on a certain bond are $500 every three months. If the bond interest rate is 10% per year compounded quarterly, the bond
9. Interest payments on a certain bond are $500 every three months. If the bond interest rate is 10% per year compounded quarterly, the bond face value is:
A) $5,000
B) $10,000
C) $15,000
D) $20,000
10. A 6%, $10,000 bond has interest payable annually. The bond will mature 10 years from now. At what market interest rate will the present worth of the bond be $10,000?
A) At an interest rate less than 6% per year
B) 6% per year
C) 6% per year compounded semiannually
D) At an interest rate greater than 7% per year
11. A 6%, $10,000 bond has interest payable annually. The bond will mature 10 years from now. At what market interest rate will the present worth of the bond be $10,000?
A) At an interest rate less than 6% per year
B) 6% per year
C) 6% per year compounded semiannually
D) At an interest rate greater than 7% per year
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