Which of the Following Equations Is Incorrect

question 10

Multiple Choice

Which of the following equations is incorrect?

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that will be paid back at maturity or the stated value upon which dividends are calculated.

Yield To Maturity

Yield to maturity is the total return anticipated on a bond if the bond is held until it matures, accounting for its current market price, face value, interest payments, and time to maturity.

Semi-annually

Occurring or calculated twice a year, typically in the context of interest payments or dividends.

Coupon Rate

The yearly interest rate a bond issuer pays to its holders, usually shown as a percent of the bond's nominal value.