What Is the Yield- To- Maturity of a $1,000, 7

question 22

Multiple Choice

What is the yield- to- maturity of a $1,000, 7% semi- annual coupon bond that matures in 2 years and currently sells for $997.07?

• A) 6.87%.
• B) 7.04%.
• C) 7.31%.
• D) 7.16%.

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Definitions:

Trade-offs

The balancing of factors or alternatives where the improvement of one results in the compromise or decline of another.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Poverty

A condition where individuals or communities lack the financial resources and essentials for a minimum standard of living.

Exchange

The act of trading goods, services, or currencies among parties.