Business plan competitions at universities are simply the culmination of an academic exercise.

If you own a $1,000 face value bond with one year remaining to maturity and a five percent coupon rate and new bonds are paying 12 percent, what is the most you can get for your old bond?

A) $1,120 B) $1,000 C) $937.50 D) impossible to determine without additional information

The exponential function

A) is the inverse of the natural logarithm function. B) does not play an important role in modeling nonlinear regression functions in econometrics. C) can be written as exp(ex). D) is ex, where e is 3.1415….