What Is the YTM of a Four-Year Bond with a Par

question 44

Multiple Choice

What is the YTM of a four-year bond with a par value of $1,000 and a 4 percent coupon rate when the bond is priced at $932.35? Assume coupons are paid annually.

• A)2.96%.
• B)5.92%.
• C)5.95%.
• D)6.22%.

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Definitions:

Attribution Theory

The theory that we explain someone’s behavior by crediting either the situation or the person’s disposition.

Social Behavior

Refers to how individuals interact with each other within a society, encompassing both cooperative and competitive actions.

Self-Awareness

The conscious knowledge of one’s own character, feelings, motives, and desires.

Heredity

The passing of traits from parents to offspring through genes.