A Ten-Year,zero-Coupon Bond with a Yield to Maturity of 6

question 116

Multiple Choice

A ten-year,zero-coupon bond with a yield to maturity of 6% has a face value of $1000.An investor purchases the bond when it is initially traded,and then sells it four years later.What is the internal rate of return (IRR) of this investment,assuming the yield to maturity does not change?

• A) 0.26%
• B) 3.07%
• C) 6.00%
• D) 7.65%
• E) 8.14%

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Definitions:

Destructive Leadership

A leadership approach characterized by the systematic and repeated behavior by a leader that violates the legitimate interest of the organization by undermining and/or sabotaging the organization’s goals, tasks, resources, and effectiveness and/or the motivation, well-being or job satisfaction of his/her subordinates.

Unstable

Lacking stability; prone to sudden change or unpredictability in terms of physical, emotional, or situational conditions.

Ethical Leadership

Involves guiding a group or organization with values, integrity, and actions that are morally right.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.