Your Firm Has Issued a 20-Year $1,000

question 74

Multiple Choice

Your firm has issued a 20-year $1,000.00 par value semiannual 10% coupon bond that sells for $1,000 in the market place.The proceeds from the sale of the bond issue are $975.00 per bond.What is your firm's yield to maturity on this new bond issue? Use a financial calculator to determine your answer.

• A)5.15%
• B)10.16%
• C)10.30%
• D)10.41%

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Definitions:

Salivation

The secretion of saliva in the mouth, which can be stimulated by the sight, smell, or taste of food.

Habituation

An adaptive behavioral response to repeated exposure to a stimulus, characterized by a decrease in response intensity over time.

Clinical Psychology

Area of psychology in which the psychologists diagnose and treat people with psychological disorders that may range from mild to severe.

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