A Bond Has Three Years to Maturity, a $2000 Face

question 67

Multiple Choice

A bond has three years to maturity, a $2000 face value, and a 6.3% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1801?

• A) 9.22%
• B) 8.48%
• C) 6.30%
• D) 10.32%

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Definitions:

Collectivism

A cultural value that emphasizes the importance of groups and community over individual achievement or identity, often prioritizing group goals over individual desires.

Defense Mechanisms

Unconscious psychological strategies employed to protect oneself from anxiety and cope with reality or maintain self-image.

Anxiety

Feelings of disquiet or restlessness, particularly about something imminent or with an undetermined outcome.

Consciously Distorting

The intentional manipulation or alteration of perception or information.