What Is the Yield to Maturity of a 4-Year Bond

question 12

Multiple Choice

What is the yield to maturity of a 4-year bond?

• A)4.69%
• B)4.95%
• C)5.02%
• D)5.05%
• E)5.08%

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Definitions:

Denominator

The bottom part of a fraction that indicates into how many parts the whole is divided.

Synthetic Division

A simplified manual method for dividing polynomials, particularly useful for dividing by linear factors.

Division

Division is one of the four basic arithmetic operations, representing the action of dividing a number into equal parts.

Expression

An expression is a combination of symbols, numbers, and operators (such as +, -, *, /) that represents a quantity.