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Which of the Following Amounts Is Closest to the Value

Question 107

Multiple Choice

Which of the following amounts is closest to the value of a bond described in The Wall Street Journal as 10s 2017? It is January 1,2009 and the appropriate interest rate is 11%.Assume that the bond matures in the same month as when the quote is given,that interest payments are made twice a year,and that an interest payment has just been made.


A) $718.28
B) $874.17
C) $895.38
D) $947.69
E) $1,000.00

Correct Answer:

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