Peerless Securities Has an Issue of $1,000 Par Value Bonds

question 87

Multiple Choice

Peerless Securities has an issue of $1,000 par value bonds with 18 years remaining to maturity.The bonds pay 7.7% interest on a semi-annual basis.The current market price of the bonds is $1,175.What is the yield-to-maturity of the bonds?

• A) 6.09%
• B) 6.87%
• C) 7.24%
• D) 8.38%

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Definitions:

Music with Vocals

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A cognitive shortcut based on the first examples that pop into someone's mind when considering a particular topic, concept, approach, or choice.

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A psychological phenomenon where the ease with which information can be retrieved from memory influences judgments of its frequency or importance.

Representative Heuristic

A mental shortcut used in decision-making, where the likelihood of an event is estimated based on how similar it is to the stereotype of the event.