The Yield to Maturity of a 20-Year Zero-Coupon Bond That

question 4

Multiple Choice

The yield to maturity of a 20-year zero-coupon bond that is selling for $372.50 with a value at maturity of $1,000 is

• A) 5.1%.
• B) 8.8%.
• C) 10.8%.
• D) 13.4%.
• E) None of the options are correct.

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Definitions:

Locus of Causality

Refers to where individuals attribute the cause of events, either internally (to themselves) or externally (to the situation or others).

Correspondent Inference

A theory suggesting that people make inferences about a person's dispositional attributes based on observed behaviors, especially when those behaviors have socially unexpected consequences.

Stability of Causation

A principle suggesting that causal relationships remain consistent across different contexts and times.

Fixed Versus Incremental Attribution

Theories that explain how people perceive their ability to change (incremental) versus viewing their abilities as static (fixed).