Dave Harris Has Just Purchased a Bond with a Face

question 80

Multiple Choice

Dave Harris has just purchased a bond with a face value of $1,000 that pays 4 percent.The purchase price of the bond was $950,and the bond will mature in 5 years.What is the yield to maturity for this bond (round to the nearest tenth of a percent) ?

• A)4.0 percent
• B)6.0 percent
• C)5.1 percent
• D)8.2 percent
• E)9.0 percent

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Short advertisements broadcast on television, typically showcasing products, services, or brands to a wide audience.

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To concentrate on a specific area of expertise, activity, or field of study to gain a higher efficiency or proficiency.

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The process of increasing a certain outcome or variable to its highest possible level, given a set of constraints.

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The total output of goods or services produced by an individual firm or an entire industry over a specific period.