The Correct Number of Significant Figures in the Number 865,000

question 63

Multiple Choice

The correct number of significant figures in the number 865,000 is:

• A)3
• B)6
• C)4
• D)ambiguous
• E)none of the above

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Definitions:

Zero-Coupon Bonds

Debt securities that are sold at a deep discount and do not pay periodic interest payments, but instead are redeemed at their face value at maturity.

Yields to Maturity

The total return anticipated on a bond if it is held until it matures, considering all interest payments and the principal repayment.

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both the interest payments received and any gain or loss if the bond is purchased at a discount or premium.

Coupon

A detachable portion of a bond that is given up in return for the periodic interest payments.