A $5,000 Face Value STRIPS Matures in 7 Years and Is

question 31

Multiple Choice

A $5,000 face value STRIPS matures in 7 years and is currently quoted at a price of 64.238.What is the yield-to-maturity?

• A)3.21 percent
• B)3.38 percent
• C)4.87 percent
• D)6.42 percent
• E)6.76 percent

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Definitions:

Felony Prosecution

The legal process of charging and trying an individual accused of a felony, which is a serious crime usually punishable by imprisonment for more than one year or by death.

Preliminary Hearing

A preliminary hearing is a court proceeding where the judge determines whether there is sufficient evidence for the case to proceed to trial.

Information Route

The path or channel through which information is transmitted from one point to another.

Grand Jury

A body of citizens convened to consider whether there is sufficient evidence to indict someone suspected of a crime, functioning primarily in the U.S. legal system.