A $1,000 Face Value Bond Has a 6

question 36

Multiple Choice

A $1,000 face value bond has a 6.85 percent semi-annual coupon and sells for $980.00.What is the current yield?

• A) 6.75 percent
• B) 6.82 percent
• C) 6.89 percent
• D) 6.99 percent
• E) 6.61 percent

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Definitions:

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out, considering lead times.

Average Inventory

The mean amount of inventory held over a specific period, used to calculate turnover rates and order quantities.

Service Level

A measure of the quality of service provided to customers, often reflected in the availability or reliability of a service.

Safety Inventory

Extra inventory kept on hand to guard against variability in demand or supply and prevent stockouts.