If a $10,000 Face Value Discount Bond Maturing in One

question 90

Multiple Choice

If a $10,000 face value discount bond maturing in one year is selling for $8,000,then its yield to maturity is

• A) 10 percent.
• B) 20 percent.
• C) 25 percent.
• D) 40 percent.

Understand the reasons why minors might have restrictions on their ability to disaffirm contracts and which types of contracts they cannot disaffirm.

Comprehend the legal implications of capacity and consent in contract law, including how it affects minors, the mentally ill, and intoxicated individuals.

Distinguish between contracts that are void, voidable, and enforceable based on legality and public policy.

Recognize the principles behind the liability of parents for their children's contracts and distinguish between contracts for necessaries and non-necessaries.

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Definitions:

Output

The final product, result, or amount produced by a process, system, or activity.

Multicollinearity

A statistical phenomenon where two or more independent variables in a regression model are highly correlated, potentially affecting the reliability of the model’s coefficients.

T-Tests

Statistical tests used to compare the means of two groups or the mean of one group against a known mean.

F-Test

A statistical test used to compare the variances of two populations to see if they are significantly different.