Sommers Co

question 31

Multiple Choice

Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000.They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125.What is their yield to maturity (YTM) ?

• A) 8.56%
• B) 9.01%
• C) 9.46%
• D) 9.93%
• E) 10.43%

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Definitions:

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior being repeated.

Positive Punisher

A stimulus that, when introduced after a behavior, decreases the likelihood of that behavior occurring again.

Negative Punisher

A stimulus that, when removed after a behavior, decreases the likelihood of that behavior occurring in the future.

Positive Punishment

The addition of an unpleasant stimulus to decrease the likelihood of a behavior's recurrence.