What Is the Approximate Yield to Maturity of an 8

question 29

Short Answer

What is the approximate yield to maturity of an 8% coupon bond, with a par value of $1,000? The bond is currently selling for $920 and has five years to maturity.

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Definitions:

Break-even Sales

The amount of revenue needed to cover total costs, at which point a business neither makes a profit nor incurs a loss.

Overall

Pertaining to the total, aggregate, or general effect, situation, or assessment.

Absorption Costing

In this accounting method, the complete cost of manufacturing a product, taking into account direct materials, direct labor, along with variable and fixed overheads, is included in the product's price.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product cost calculations, excluding fixed overhead.