Consider a three-year coupon bond that has a present value of $2,000. If the annual rate of discount is 7 percent, and the payment made at the end of each year is $140, the principal amount to be repaid at the end of three years is

A. $1,860.00.
B. $2,000.00.
C. $2,140.00.
D. $2,156.40.


Answer: B

Business

You might also like to view...

The blogosphere is cluttered and difficult to control

Indicate whether the statement is true or false

Business

The institutionalisation of conflict by establishing rules and procedures to contain disagreement and to reconcile the interests of stakeholders is associated with which perspective on the employment relationship:

a. unitarism b. pluralism c. Marxism d. individualism

Business

In general, linear programming is unable to solve complex labor planning as the objective function is usually not definable

Indicate whether the statement is true or false

Business

Giving preferential treatment in contract bidding to the daughter of a member of the company board is not a conflict of interest

Indicate whether the statement is true or false

Business