What Is the Yield to Maturity of a Corporate Bond

question 31

Multiple Choice

What is the yield to maturity of a corporate bond with 13 years to maturity,a coupon rate of 8% per year,a $1,000 par value,and a current market price of $1,250? Assume semiannual coupon payments.

• A) 4.2%
• B) 4.7%
• C) 6.0%
• D) 5.3%

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Definitions:

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The milk produced by human breasts or mammary glands, specifically designed to feed babies and infants, containing essential nutrients for development.

Demand Curve

A visual chart that illustrates how the demand for a product or service, as indicated by the quantity consumers are willing to purchase, varies with price changes over a specific timeframe.

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A severe health condition that has a high probability of causing death.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good supplied.