The Yield to Maturity on a 1-Year Bond Purchased for $980

question 36

Multiple Choice

The yield to maturity on a 1-year bond purchased for $980 with a maturity value of $1100 is:

• A)10.05%
• B)12.24%
• C)13.50%
• D)14.23%

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Definitions:

Value of the Dollar

The purchasing power of the U.S. dollar, indicating how much goods and services it can buy, often relative to other currencies.

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Professionals involved in the marketing activities aimed at creating, promoting, and delivering products or services in the United States market.

Export Goods

Products or commodities that are produced in one country and then sold and shipped to other countries.

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A liquid fat obtained from olives, used in cooking, cosmetics, pharmaceuticals, and soaps, and as a fuel for traditional oil lamps.