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

question 77

Multiple Choice

If a $10,000 face value discount bond maturing in one year is selling for $9,000,then its yield to maturity is approximately

• A) 9 percent.
• B) 10 percent.
• C) 11 percent.
• D) 12 percent.

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Definitions:

Street Lighting

A service provided, often by local governments, that involves the installation and maintenance of public lighting along streets and in public areas for safety and visibility.

Marginal Benefit

The additional benefit derived from consuming or producing one more unit of a good or service.

Marginal Cost

The cost involved in generating an extra unit of a product or service.

Market Economy

A type of economic system where decisions regarding investment, production, and distribution are based on supply and demand, with minimal government intervention.