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

question 24

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 pays coupons semi-annually and is priced at $932.35?

• A)2.96%.
• B)5.92%.
• C)5.95%.
• D)11.84%.

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Definitions:

Purchases Journal

A journal used to record all purchases of goods and services on credit for a company's operational needs.

Creditor Accounts

Accounts payable to suppliers or lenders from whom a business has borrowed money or purchased goods on credit.

Accounts Payable Cr.

Accounts Payable Credit refers to the credit balance or entry in the accounts payable account, indicating the total amount the company owes to its suppliers or vendors.

Other Accounts

A general term for accounts on the balance sheet that may include miscellaneous expenses, revenues, assets, or liabilities not classified under standard account categories.