A $1,000 Face Value Bond Is Selling for $1,016

question 44

Multiple Choice

A $1,000 face value bond is selling for $1,016.36.The bond pays interest semiannually and has 3.5 years to maturity.The yield to maturity is 5.48 percent.The current yield is ________ percent and the coupon rate is ________ percent.

• A) 5.86; 5.90
• B) 5.90; 6.00
• C) 5.90; 5.86
• D) 6.00; 5.90
• E) 6.00; 5.86

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Definitions:

Natural Phenomena

Events or processes that occur in the natural world, independent of human intervention.

Type I Error

A statistical error occurring when a null hypothesis is wrongly rejected, meaning a false positive result is concluded.

Type II Error

An error that occurs when a false null hypothesis fails to be rejected.