Use the Information for the Question(s)below

question 57

Multiple Choice

Use the information for the question(s) below.
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years.The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
-Assuming that this bond trades for $903,then the YTM for this bond is closest to:

• A)8.0%.
• B)6.8%.
• C)9.9%.
• D)9.2%.

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Definitions:

Private Goods

Goods that are excludable and rival in consumption, meaning their use by one individual prevents use by another.

Government Spending

The total amount of money that a government expends on services, goods, and public projects.

Marginal Benefit

The additional benefit received from the consumption of one more unit of a good or service.

Marginal Cost

The additional cost incurred in producing one more unit of a product or service.