Which of the Following Is the Formula to Determine Magnification

question 48

Multiple Choice

Which of the following is the formula to determine magnification factor?

• A) MF = SID/OID.
• B) MF = SID/SOD.
• C) MF = SOD/SID.
• D) MF = OID/SID.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, factoring in both interest payments and the capital gain or loss realized upon maturity.

Coupon Rate

The interest rate that an issuer of a bond or other fixed-income security agrees to pay to the bondholder annually, expressed as a percentage of the bond's face value.

Every Three Months

A quarter-yearly interval, commonly used in the context of financial payments, reporting periods, or other scheduled events.

Coupon Payments

Regular interest payments made to bondholders as compensation for the investment and loan of capital.