What Is the Yield to Maturity of a 4-Year Bond

question 18

Multiple Choice

What is the yield to maturity of a 4-year bond?

• A)4.69%
• B)4.95%
• C)5.02%
• D)5.05%

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Definitions:

Predetermined Overhead Rates

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a selected activity base, such as machine-hours.

Markup

The amount added to the cost of a product to determine the selling price, typically expressed as a percentage of the cost.

Machine-Hours

An indicator of manufacturing productivity that calculates the total hours machinery is active in the production cycle.

Manufacturing Overhead

Refers to all the costs associated with the manufacturing process except for direct materials and direct labor.