If you are considering the purchase of a $1,000 bond with a coupon rate of 7%, and if your Required Rate of Return equals 8.5%, then without actually calculating the valuation of the bond that matures in 10 years, will you, as a rational economic investor, purchase this investment at Premium Price Face Value of $1,000 Discount Price The organization which keeps track of interest payments due from the bond issuers to the bondholders, and which keeps track of other administrative duties related to the administration of a bond, is called INdenture Lien Holder Subordinated Lien Holder Trustee A corporation issued a bond for $1,000 with a 10 year maturity in 2010 is now facing payment of the principal to the current bondholder here in 2020. The original bond was issued with a coupon rate of 8%; however, the current interest rates, and thus the Required Rate of Return required by the other bondholders, have now settled to 3%. The maturity amount of principal that the issuer owes to the bondholders equals A Premium over $1,000 A Discount below $1,000 None of the above. The Maturity Value of $1,000 You receive a lump sum aware of $25,000 and you decided to invest that money into an investment that will earn 9% annually. How much will the lump sum be worth after 7 years? $34,511 $139,500 $100,824 $45,701 Your uncle announces a gift for you. You can receive $10,000 at the end of 20 years; or, he will offer you $1,000 today. Assuming that 6% is the interest rate you can achieve over the years, what is the Present Value of the $10,000 gift you could potentially receive? $3,238 $3,233 $3,118 $3,175