The Yield to Maturity on a Semi-Annual Payment Bond Is

question 60

Multiple Choice

The yield to maturity on a semi-annual payment bond is quoted as _________________.

• A) An EAR.
• B) A six-month rate.
• C) An APR.
• D) A compound rate.
• E) A current yield.

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Definitions:

Operating Profit

Operating Profit refers to the profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Selling Price

The amount of money for which a product or service is sold to the buyer.

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Discount Period

The time frame within which a payment can be made at a reduced rate before the full invoice amount becomes due.