If a one - year bond is purchased for $700 and the interest rate (its yield) is 5 percent, what will it pay in one year? O A. $35 OB. $665 O C. $735 OD. $770
If a one - year bond is purchased for $700 and the interest rate (its yield) is 5 percent, what will it pay in one year? O A. $35 OB. $665 O C. $735 OD. $770
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If a one-year bond is purchased for $700 and the interest rate (its yield) is 5 percent, what will it pay in one year?
A. $35
B. $665
C. $735
D. $770
Gliek te eelect yeur answer
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