If a $10,000 Face Value Discount Bond Maturing in One

question 90

Multiple Choice

If a $10,000 face value discount bond maturing in one year is selling for $8,000,then its yield to maturity is

• A) 10 percent.
• B) 20 percent.
• C) 25 percent.
• D) 40 percent.

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Definitions:

Sample Size

The number of observations or data points that are included in a statistical sample.

Confidence Interval

A confidence interval is a range of values, derived from sample data, that is likely to contain the value of an unknown population parameter.

Point Estimate

A single value given as an estimate of a population parameter that is unknown, typically derived from a sample.

Peripheral Resistance

The resistance to blood flow in the circulatory system, primarily determined by the diameter and elasticity of blood vessels.