If $1 Million Is Invested at 6% Per Year,in Approximately

question 43

Multiple Choice

If $1 million is invested at 6% per year,in approximately how many years will the investment double?

• A)10.1
• B)11.9
• C)12.9
• D)15
• E)8.7

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Definitions:

Market Yield

The annual income return on an investment, expressed as a percentage of the market price.

Face Value

The nominal value printed on a security or financial instrument, such as a bond or stock, at issue.

Convertible Bond

A type of corporate bond that can be converted into a predetermined number of the company's equity shares at certain times during its life, usually at the discretion of the bondholder.

Conversion Premium

The additional cost over the current price that one pays to convert a convertible security into stock.