If a $10,000 Face-Value Discount Bond Maturing in One Year

question 40

Multiple Choice

If a $10,000 face-value discount bond maturing in one year is selling for $5,000,then its yield to maturity is

• A)5 percent.
• B)10 percent.
• C)50 percent.
• D)100 percent.

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Definitions:

Rebuilt Ignition Systems

Ignition systems that have been taken apart, inspected, repaired, and reassembled to ensure they meet certain standards.

Assembly Line

A manufacturing process in which parts are added in sequence until the final assembly is produced.

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Verbal communication between two or more parties over a telephone network.

Probability

A measure quantifying the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 indicates certainty.