Approximately What Would a GMA 6% Coupon Bond Maturing in 14

question 1

Multiple Choice

Approximately what would a GMA 6% coupon bond maturing in 14 years sell for if the current yield is 6.8633% and the yield-to-maturity is 7.48%?

• A) $950.20
• B) $920.02
• C) $1051.54
• D) $874.21

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Definitions:

Litters

Groups of young animals born to an animal at one time or the act of discarding trash inappropriately in the environment.

Wilcoxon Signed Rank Test

A statistical test that doesn't assume a specific distribution, designed to analyze two related samples, matched pairs, or repeated observations on a single subject, aiming to determine if there's a significant difference in the average ranks of their populations.

Level Of Significance

The criterion used for rejecting the null hypothesis, a measure of how strong the evidence must be to conclude that there is a significant effect.

Ranking

The assignment of positions or grades to individuals or items in a group, based on a comparison of their attributes or achievements.