The Yield on a Perpetuity Bond That Has an Interest

question 173

Multiple Choice

The yield on a perpetuity bond that has an interest payment of $60 and a price of $1,200 is

• A) 5%.
• B) 6%.
• C) 12%.
• D) 25%.

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Definitions:

Population Standard Error

A measure of how much the sample mean of a population is likely to vary from the true population mean.

Confidence Interval

An array of values, sourced from statistical analysis of a sample, believed to cover the value of an unspecified population parameter.

Mean

The average of a set of numerical values, calculated by adding all the figures together and then dividing by the number of values.

Population Standard Deviation

Square root of the population variance that represents the average deviation of a score from the population mean.