The YTM of a 3-Year Default-Free Security with a Face

question 99

Multiple Choice

The YTM of a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6% is closest to:

• A) 5.3%
• B) 5.8%
• C) 5.5%
• D) 5.2%

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Definitions:

Shiite Arabs

Members of the Shia Islam branch primarily located in the Middle East, with significant communities among Arab populations.

Sunni Arabs

A major religious and ethnic group within Islam, primarily in the Arab world, distinguished by their adherence to the Sunni branch of Islam.

Kurds

An ethnic group native to a mountainous region straddling southeastern Turkey, northern Syria, northern Iraq, and western Iran, with their own unique culture and language.

Iranian Nuclear Deal

An agreement reached in 2015 between Iran and major world powers aimed at limiting Iran's nuclear program in exchange for lifting economic sanctions.