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a $5,000 face value bond is quoted at bank discount yield of 2.8 percent. what i

ID: 2704732 • Letter: A

Question

a $5,000 face value bond is quoted at bank discount  yield of 2.8 percent.  what is the current value of the bond if it matures in 36 days

4972

4978

4982

4986

4991

yesterday, krista stated that overland stock was only worth $12 a share since it was selling for $15 a share, she delcared it overpriced and refuled to buy.  this morning, she learned that she is ineriting 3500 shares of overland stock. suddently she is sayin sit is a great buy at $15 and is worth $17.  this is an example of

endowment

money illouson

regret aversion

myopic loss aversion

sunk cost fallacy

Explanation / Answer

For your first question

The correct answer is 4986 NOT 4972

Use the Bank Discount Basis formula

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