For Simple Loans, the Yield to Maturity

question 41

Multiple Choice

For simple loans, the yield to maturity

• A)is always less than the specified simple interest rate.
• B)is always greater than the specified simple interest rate.
• C)is always equal to the specified simple interest rate.
• D)may be less than, greater than, or equal to the specified simple interest rate, depending on the maturity of the loan.

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Definitions:

Fallacy

A flaw in the process of thought that results in an argument being invalid or not solidly reasoned.

Affirming Consequent

A logical fallacy where one assumes that because the consequent is true, the antecedent must also be true; it's a flawed argument in conditional reasoning.

Antecedent

The conditional clause that represents the if-part in a conditional statement, where its truth logically necessitates the truth of the consequent.

Modus Ponens

A logical form of argument where, from two premises, one asserts a condition and the other affirms that condition, leading to a conclusion.