A Discount Bond Selling for $15,000 with a Face Value

question 82

Multiple Choice

A discount bond selling for $15,000 with a face value of $20,000 in one year has a yield to maturity of

• A)3 percent.
• B)20 percent.
• C)25 percent.
• D)33.3 percent.

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Definitions:

Accurate Self-assessment

An individual's ability to correctly identify and evaluate their own abilities, characteristics, and feelings.

Empirical Method

The empirical method involves gaining knowledge through direct and indirect observation or experience, emphasizing the role of evidence and experimentation.

Correlated Outcomes

Refers to situations where two or more variables or events are associated in such a way that the presence or magnitude of one is related to the presence or magnitude of the other(s).

Test Construction

The process of designing assessments to measure specific abilities, knowledge, or traits accurately and reliably.