Tony's Pizzeria Plans to Issue Bonds with a Par Value

question 43

Multiple Choice

Tony's Pizzeria plans to issue bonds with a par value of $1,000 and 10 years to maturity. These bonds will pay $45 interest every 6 months. Current market conditions are such that the bonds will be sold at net $937.79. What is the yield to maturity (YTM) of the issue as a broker would quote it to an investor? (Round the answer to the nearest whole number.)

• A) 11%
• B) 10%
• C) 9%
• D) 8%
• E) 7%

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Definitions:

Positive Reinforcement

An approach in psychology used to encourage a desirable behavior by offering a rewarding stimulus following the behavior.

Performance Appraisals

The process of evaluating an employee's job performance against predefined benchmarks or criteria.

Timing of Feedback

Refers to the point in time or situation when comments or information regarding performance or behavior are shared with an individual, influencing learning and development.

Performance Criteria

Standards or benchmarks used to assess the quality or success of performance in various activities.