The Formula for the Yield to Maturity, I, on a Discount

question 64

Multiple Choice

The formula for the yield to maturity, i, on a discount bond is

• A)i = (Face value - Discount price)/Discount price.
• B)i = (Discount price - Face value)/Discount price.
• C)i = (Face value - Discount price)/Face value.
• D)i = (Discount price - Face value)/Face value.

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Definitions:

Still Photos

Photographs that capture a single moment in time, particularly in contrast to moving images.

Size Constancy

A perceptual process allowing a person to perceive an object as the same size regardless of its distance from the observer.

Optical Illusions

Visual perception phenomena where the information perceived by the eye and interpreted by the brain differs from the physical reality, often leading to misinterpretation.

Accurate Judgments

The ability to make conclusions or assessments that are correct and based on evidence or sound reasoning.