What Is the Yield to Maturity for a Bond Paying

question 55

Multiple Choice

What is the yield to maturity for a bond paying $100 annually that has 6 years until maturity and sells for $1,000?

• A) 6.0%
• B) 8.5%
• C) 10.0%
• D) 12.5%

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Definitions:

Customizing Department

A division within a company that modifies products to meet specific requirements or preferences of customers.

Direct Labor-Hours

A measure of the time directly spent by workers on producing a product or delivering a service, often used to allocate manufacturing overhead.

Overhead Applied

The allocation of overhead costs to produced goods based on a pre-determined rate or basis such as direct labor hours or machine hours.

Assembly Department

A part of a production facility where pieces are combined to form complete products.