What Is the Yield to Maturity of a TVA Bond

question 17

Multiple Choice

What is the yield to maturity of a TVA bond that has a 9 1/2 percent coupon, pays interest semiannually, has 12 years to maturity, and sells for $871.50?

• A) 11.3%
• B) 11.5%
• C) 11.8%
• D) 12.1%

---

Definitions:

Total Cost

The complete financial expenditure involved in the production of goods or services, including both fixed and variable costs.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services to make a profit.

Producing

The act or process of creating goods or services using inputs like labor, materials, and machines.

Maximum Weekly Profit

The highest amount of financial gain a business can achieve in one week, based on its revenue and costs.