The Yield on a 2 Year Security Is 7

question 99

Multiple Choice

The yield on a 2 year security is 7.8%. If the yield of a security maturing in 1 year is 7.2%, what is the expected yield on a 1 year security maturing at the end of year 2?

• A) 7.2%
• B) 8.4%
• C) 8.8%
• D) 9.6%

---

Definitions:

Firm Image

The public perception or reputation of a business, shaped by its branding, marketing efforts, and customer experiences.

Ratings

Assessments or evaluations of the quality, popularity, or performance of something such as a TV show, product, or service.

Exposure

The extent to which a target audience encounters a specific marketing message or brand over a specific period.

Costs

Expenses incurred by a business or individual in the production of goods or services or in the conduct of activities.