A $5,000 Face Value Bond with 49 Days to Maturity

question 20

Multiple Choice

A $5,000 face value bond with 49 days to maturity is currently selling for $4,936. What is the bank discount yield?

• A) 9.40%
• B) 9.10%
• C) 8.46%
• D) 10.49%
• E) 7.42%

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Definitions:

Compromise

A method of resolving disagreement that involves mutual concessions and agreement on a course of action that is acceptable to all parties involved.

Cooperativeness

The willingness to work together towards common goals or interests.

Conflict Management

The method of recognizing and managing disputes in a rational, equitable, and effective way.

Compromise

A method of resolving disputes by making mutual concessions to reach a mutually acceptable decision.