A STRIPS Has a $9,000 Par Value and a Market

question 80

Multiple Choice

A STRIPS has a $9,000 par value and a market value of $7,050.The time to maturity is 5 years.What is the yield to maturity?

• A) 2.07 percent
• B) 3.00 percent
• C) 4.94 percent
• D) 5.00 percent
• E) 5.07 percent

Distinguish between true and false assumptions regarding economic decisions and principles.

Understand the concept of opportunity cost in economic decision making.

Comprehend the difference between rational and irrational decision making.

Identify the role and calculation of marginal costs and benefits in optimal decision making.

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Definitions:

Overtaxed

A condition where individuals or entities are subject to excessive tax rates relative to their income or profit.

Payroll Tax

Levies charged to both employers and employees, based on a percentage of the wages that employees receive from their employers.

Wage-Base Limitation

A ceiling on the amount of an employee's income that is subject to certain taxes or contributions.

Progressive

A political and social philosophy advocating for reform and improvements in social justice, welfare, and the protection of civil liberties.