A Bond Currently Trades at $975 on the Secondary Market

question 15

Multiple Choice

A bond currently trades at $975 on the secondary market.The bond has 10 years until maturity and pays an ANNUAL coupon at 9% of face value.The face value of the bond is $1,000.What is the yield to maturity for this bond?

• A) 8.86%
• B) 9.00%
• C) 9.23%
• D) 9.40%

Recognize the continued relevance of traditional tools like spreadsheets and database software in supply chain information systems (SCIS).

Identify key trends driving the growth of information technology in supply chain management.

Appreciate the importance of information quality in effective business decision-making.

Understand the limitations of technology in fixing flawed supply chain processes or compensating for poor quality data.

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Definitions:

System II Thinking

A cognitive process that involves analytical, effortful, and logical thinking as opposed to quick, instinctual, and often biased System I thinking.

System I Thinking

A term from dual-process theory referring to fast, automatic, emotional, and subconscious thought processes.

Utility Theory

A theory in economics and finance that describes how individuals choose among different options or actions based on their expected happiness or satisfaction.

Framing

The way a decision is phrased or the way options are described. Seemingly peripheral aspects of the framing can influence decisions by changing the point of reference.