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

question 77

Multiple Choice

If a $10,000 face value discount bond maturing in one year is selling for $9,000,then its yield to maturity is approximately

• A) 9 percent.
• B) 10 percent.
• C) 11 percent.
• D) 12 percent.

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Definitions:

Constitutional Convention

A gathering for the purpose of writing or revising a constitution, such as the one held in Philadelphia in 1787 to draft the U.S. Constitution.

Average American

The concept or statistical figure representing the typical attributes or characteristics of an average citizen in the United States.

Slave Owners

Individuals who owned slaves, especially prevalent in historical contexts where slavery was legally and socially sanctioned, such as pre-Civil War United States.

James Madison

The fourth President of the United States (1809-1817), hailed as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution and the Bill of Rights.