A Bond Has a Coupon Rate of 8%,pays Interest Semiannually,sells

question 5

Multiple Choice

A bond has a coupon rate of 8%,pays interest semiannually,sells for $960,and matures in 3 years.What is its yield to maturity?

• A) 4.78%
• B) 5.48%
• C) 9.57%
• D) 12.17%

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Definitions:

International Specializations

The phenomenon where countries focus on the production and export of goods and services that they can produce efficiently and trade for what they cannot produce as efficiently.

Petroleum Industry

An industry that deals with the exploration, extraction, refining, transporting, and marketing of petroleum products.

Intensive Crop Cultivation

A farming practice that aims to maximize agricultural output per acre through the use of modern agricultural techniques and inputs like fertilizers, pesticides, and irrigation.

Plows

Agricultural tools used for tilling the soil, preparing it for sowing seeds by turning over the upper layer.