What Is the Yield to Maturity of a Bond with the Following

question 25

Multiple Choice

What is the yield to maturity of a bond with the following characteristics? Coupon rate is 8% with semi-annual payments, current price is $960, three years until maturity.

• A)4.78%
• B)5.48%
• C)9.57%
• D)12.17% Using the BAII Plus calculator:

---

Definitions:

Connecticut Compromise

A key agreement during the drafting of the United States Constitution that balanced representation by giving states equal representation in the Senate and proportional representation in the House of Representatives.

Constitution

The fundamental principles or established precedents according to which a state or other organization is governed.

Anti-federalists

Opponents of the ratification of the U.S. Constitution, fearing that a strong central government would endanger individual liberties and states' rights.

State Constitutions

The fundamental governing documents of each U.S. state, outlining the structure and function of the state government.