Suppose Matt's New Cars issues a one-year discount bond with a face value of $10,000, and received $9259, repaying $10,000 after one year. The interest rate on this bond would be
A) 2.6%.
B) 7.41%
C) 8%.
D) 10%.
Correct Answer:
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Q9: Issuers of coupon bonds
A)make a single payment
Q10: The coupon rate is the
A)yearly coupon payment
Q11: Suppose First National Bank makes a one-year
Q12: Debt instruments are also called
A)equities.
B)credit market instruments.
C)prospectuses.
D)units
Q13: Which of the following is NOT true
Q15: A discount bond resembles a simple loan
Q16: The amount of funds the borrower receives
Q17: Simple loans and discount bonds differ from
Q18: When you place your funds in a
Q19: The total payment to a lender for
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