Determine the Sum or Difference in the Given Clock Arithmetic

question 4

Multiple Choice

Determine the sum or difference in the given clock arithmetic.
-2 - 6 (clock 6)

• A) 6
• B) 2
• C) 3
• D) 1

---

Definitions:

Coupon Rate

The percentage rate of interest a bond yields annually, based on its nominal value.

Yield To Maturity

The total return anticipated on a bond if it is held until the due date, considering all interest payments and the capital gain or loss.

Semiannually

Occurring twice a year; a term often used to describe the frequency of interest payment, dividends, or other financial events.

Fisher Formula

An equation used in economics and finance that describes the relationship between nominal interest rates, real interest rates, and the inflation rate.