A Treasury Bond Has a Yield to Maturity of 4

question 66

Multiple Choice

A Treasury bond has a yield to maturity of 4.4%, a time to maturity of 10 years, and a coupon rate of 5.0%. What is the bond price?

• A)$940.65
• B)$946.95
• C)$1,054.55
• D)$1,048.12
• E)$1,169.56

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Definitions:

Scarcer

Describes a condition where resources, goods, or services become less available or in shorter supply than previously.

Price Rises

A situation where the cost of goods or services increases over time due to factors like inflation, increased demand, or higher production costs.

Future Supply

Future supply refers to the quantity of a good or service that will be available in the market at future dates, based on current expectations of production and market conditions.

Proved Reserves

Quantities of natural resources, like oil or gas, that geological and engineering information indicates with reasonable certainty can be recovered in the future from known reservoirs under existing economic and operating conditions.