A Coupon Bond That Pays Interest of $100 Annually Has

question 86

Multiple Choice

A coupon bond that pays interest of $100 annually has a par value of $1,000, matures in five years, and is selling today at a $72 discount from par value.The yield to maturity on this bond is

• A)6.00%.
• B)8.33%.
• C)12.00%.
• D)60.00%.

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished response after a pause.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which affects the likelihood of that behavior being repeated.

Latent Learning

A form of learning that occurs without any immediate or obvious reinforcement, only becoming apparent through a subsequent change in behavior.

Observational Learning

Learning that occurs through observing the behaviors of others and the outcomes of those behaviors, without direct experience.