All of the Following Adjustments Must Be Made When Interest

question 103

Multiple Choice

All of the following adjustments must be made when interest is paid semiannually versus annually EXCEPT:

• A) Annual interest rate divided by 2
• B) Total number of years divided by 2
• C) Annual yield to maturity divided by 2
• D) Annual coupon payment divided by 2

---

Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used in inventory valuation and other financial measurements.