If a $5,000 Face-Value Discount Bond Maturing in One Year

question 12

Multiple Choice

If a $5,000 face-value discount bond maturing in one year is selling for $5,000,then its yield to maturity is

• A)0 percent.
• B)5 percent.
• C)10 percent.
• D)20 percent.

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Definitions:

Informational Function

The role of providing valuable data or knowledge to individuals or entities, facilitating informed decision-making.

Due Process Clause

A constitutional guarantee under the Fifth and Fourteenth Amendments that legal proceedings will be fair and that one will be given notice and an opportunity to be heard.

Social Security

A government program designed to provide financial assistance to individuals during retirement, disability, or upon the death of a spouse or parent, funded through payroll taxes.

Procedural Due Process

A legal principle requiring government actions against individuals to be conducted through a fair and transparent process, ensuring justice is served.