A Level-Coupon Bond Has a Yield-To-Maturity of 10

question 49

Multiple Choice

A level-coupon bond has a yield-to-maturity of 10%. In order for an investor to be assured an average annual yield of 10% on his investment in the bond, which of the following is NOT
Necessary?

• A)The investor must reinvest all the coupon payments he receives at 10%.
• B)The issuer must not default or be late with its payments.
• C)The investor must hold the bond until it matures.
• D)All of the above are necessary to insure the investor earns an average annual return of 10% on this investment.

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Definitions:

Pulmonary Trunk

A major blood vessel that carries blood from the heart’s right ventricle to the lungs for oxygenation.

Pulmonary Arteries

are the arteries that carry deoxygenated blood from the heart to the lungs for oxygenation.

Myocardial Contraction

The phase of the cardiac cycle during which the heart muscle contracts, forcing blood out of the chambers.

Coronary Blood Vessels

The arteries that supply blood to the heart muscle itself, crucial for its function and vitality.