A Coupon Bond Which Pays Interest of 4% Annually, Has

question 27

Multiple Choice

A coupon bond which pays interest of 4% annually, has a par value of $1 000, matures in 5 years, and is selling today at $785. The actual yield to maturity on this bond is ________.

• A)7.2%
• B)8.8%
• C)9.1%
• D)9.6% $785 = $40

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Definitions:

Bar Associations

Professional organizations that license and regulate attorneys, often providing legal education and professional development.

Professional Conduct

Standards and practices that individuals in a specific profession are expected to abide by.

Legal Profession

A broad category encompassing individuals who work within the legal system, including lawyers, judges, paralegals, and other legal professionals.

National Bar Association

An organization that represents the interests of African American attorneys, judges, law professors, and law students across the United States, established to advance justice and equality.