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C) The Thce value of the bond has decreased D) The bonds maturity value exceeds the band's price. 9) 9) How much interest will be

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C) The Thce value of the bond has decreased D) The bonds maturity value exceeds the band's price. 9) 9) How much interest will be earned in an account into which S1.000 15 year with continuous compounding at a 13% rute? A) $169.00 B) S130.00 into which $1,000 is deposited for one C) $353.34 D) $138.83 10) TO) An interest rate that has been annualized using compound interest is termed A) discounted interest rate, B) annual percentage rate. C) effective annual interest rate. D) discount factor. 11) 11) What causes bonds to sell for a premium? A) Speculative-grade ratings B) Investment-quality ratings C) Long periods until maturity D) Coupon rates that exceed market rates 12) 12) What nominal return would an investor need to receive if he desires a real return of 4% and the rate of inflation is 5%? A) 4.20% B) 8.64% C) 9.20% D) 9.00%

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