You Can Purchase a Strip Bond at $888 That Has

question 94

Multiple Choice

You can purchase a strip bond at $888 that has a term to maturity of 7 years.What would be the Yield-to-Maturity on this bond?

• A) 5.71%
• B) 3.25%
• C) 1.71%
• D) 2.89%

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Definitions:

Witness's Credibility

Refers to the believability of a witness based on their honesty, reliability, and consistency in testimony.

Appellate Court

A higher court that reviews the decisions of lower courts to ensure that the law was applied correctly and justice was served.

Lower Court

A court of law that has limited jurisdiction or authority and is below a higher court in the judicial hierarchy.

Judgment

A formal decision or finding made by a court of law at the conclusion of a lawsuit.