Dave Harris Has Just Purchased a Bond with a Face

question 53

Multiple Choice

Dave Harris has just purchased a bond with a face value of $1,000 that pays 6 percent.The purchase price of the bond was $900,and the bond will mature in 5 years.What is the yield to maturity for this bond?

• A)5.5 percent
• B)6.0 percent
• C)8.4 percent
• D)9.0 percent
• E)6.7 percent

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Definitions:

Stressful Situations

Circumstances or events that place a psychological or physical demand on an individual, often triggering stress responses.

Allostatic Load

The term refers to the “wear and tear” of the body due to prolonged activation of physiological stress responses.

Allostasis

The concept that different circumstances require different levels of physiological activation.

Activation

The process of initiating or stimulating an action or response by the nervous system or any biological mechanism.