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:

Needs-Hierarchy Theory

A motivational theory in psychology proposed by Abraham Maslow, which suggests that needs exist in a hierarchy from basic physical needs to self-actualization.

New Psychology

Refers to modern or contemporary approaches and perspectives in the field of psychology, emphasizing recent developments, theories, or methodologies.

Cognitive-Behaviorist

Refers to a psychological approach that combines cognitive and behavioral therapies to treat psychological disorders, focusing on modifying dysfunctional emotions, behaviors, and thoughts.

Growth Needs

Psychological requirements for personal development and self-actualization.