A $1,000 Face Value Bond Is Selling for $1,016

question 44

Multiple Choice

A $1,000 face value bond is selling for $1,016.36.The bond pays interest semiannually and has 3.5 years to maturity.The yield to maturity is 5.48 percent.The current yield is ________ percent and the coupon rate is ________ percent.

• A) 5.86; 5.90
• B) 5.90; 6.00
• C) 5.90; 5.86
• D) 6.00; 5.90
• E) 6.00; 5.86

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Definitions:

Dependent Variable

A variable in an experiment or model that is expected to change in response to changes in other variables.

Independent Variable

Factors in an experiment that are deliberately changed to test their impact on outcomes, observed through changes in the dependent variable.

Mean Square Error

A metric used to measure the average of the squares of the errors, indicating the discrepancy between estimated and actual values.

Dependent Variable

In a study or experiment, this is the variable anticipated to vary as a result of alterations in the independent variable.