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:

Revenue Test

A criterion used to determine the effectiveness of a business's ability to generate income.

Total Amount

The complete sum or quantity calculated by adding together all the individual components or values.

Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Reportable Segment

A part of an organization that engages in business activities from which it may earn revenues and incur expenses, and whose operating results are regularly reviewed by the organization's chief operating decision maker.