Adams Enterprises' Noncallable Bonds Currently Sell for $1,120

question 92

Multiple Choice

Adams Enterprises' noncallable bonds currently sell for $1,120.They have a 15-year maturity,an annual coupon of $85,and a par value of $1,000.What is their yield to maturity?

• A)5.84%
• B)6.15%
• C)6.47%
• D)6.81%
• E)7.17%

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Definitions:

Intercropping

An agricultural practice that involves growing two or more crops in proximity for purposes such as pest control, pollination, and to increase productivity.

Alfalfa

A leguminous plant with clover-like leaves and bluish flowers, widely grown as forage for cattle and as a nitrogen-fixing crop, enriching soil fertility.

Subsistence Agriculture

Farming practices aimed at self-sufficiency, producing enough food for the farmer's family, with little to no surplus for trade.