Determine the Yield to Maturity to the Nearest Tenth of 1

question 88

Multiple Choice

Determine the yield to maturity to the nearest tenth of 1 percent of a zero coupon bond with 8 years to maturity that is currently selling for $404.

• A) 11.3%
• B) 12.3%
• C) 11.7%
• D) 12.0%

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Definitions:

Services Paid

Expenses related to services that have been paid for by a company or individual.

Services Performed

Tasks or activities completed by a business in exchange for payment, often recognized as revenue according to the revenue recognition principle.

Post-closing Trial Balance

A list of all accounts and their balances after the closing entries are made, used to check the accuracy of closing entries and prepare for the next accounting period.

Retained Earnings

The cumulative amount of net income earned by a company that is retained and not distributed to shareholders as dividends.