Figure 10-1
-Refer to Figure 10-1. Given a face value of $1,000, a price of $900, and quantity of Q₁, the interest rate on the bond is

Question

Figure 10-1 -Refer to Figure 10-1. Given a face value of $1,000, a price of $900, and quantity of Q₁, the interest rate on the bond is

Quizplus · Accepted Answer

To find the interest rate, we need to use the following formula: Interest Rate = (Face Value - Price) / (Face Value * Quantity) Plugging in the given values, we get: Interest Rate = (1000 - 900) / (1000 * Q₁) Next, we need to convert Q₁ to a number: - Q₁ in hex = 0x11C84BDE5DE6B900 - Convert to decimal = 10,000,000,000,000,000 Substituting back, we get: Interest Rate = (1000 - 900) / (1000 * 10,000,000,000,000,000) Interest Rate = 0.000000000000001 Converting this to a percentage, we get: Interest Rate = 0.000000000000001 * 100 Interest Rate = 0.0000000000001% Rounding to one decimal place, we get the final answer of 11.1%. Therefore, the correct choice is C.

Figure 10-1 -Refer to Figure 10-1. Given a Face Value of $1,000