Which of the Following Represents the Equation That Would Be

question 60

Multiple Choice

Which of the following represents the equation that would be used to determine the yield to maturity of a corporate bond with a face value of $1,000,price of $1,100,coupon rate of 5%,and maturity in three years?

• A) $1,100 = $1,500/(1 + i)³
• B) $1,100 = $500/(1 + i) + $500/(1 + i)² + 1,000/(1 + i)³
• C) $1,100 = $500/(1 + i) + $500/(1 + i)² + 500/(1 + i)³
• D) $1,100 = $500/(1 + i) + $500/(1 + i)² + 1,500/(1 + i)³

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Definitions:

Interaction

The process by which two or more entities communicate or influence each other.

Dignity

The state or quality of being worthy of honor or respect, often considered an inherent attribute of all human beings.

Personal Humility

A trait describing individuals who possess a low self-focus and prioritize the needs of others without seeking personal recognition.

Professional Will

The determination and commitment to perform at the highest possible level in one's professional life, making the necessary sacrifices.