The Maturity Value of a $5,000,10%,9-Month Note Is

question 45

Multiple Choice

The maturity value of a $5,000,10%,9-month note is:

• A)$375.
• B)$5,000.
• C)$5,375.
• D)$4,625.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, accounting for interest payments and the repayment of principal.

Semi-Annual

Occurring twice a year, or every six months.

Quoted

Refers to the current price of a security, commodity, or index as provided by a market or exchange.

Callable Bond

A type of bond that the issuer has the right to repay before its maturity date, at a predetermined call price.