A Bond Has Five Years to Maturity, a $1000 Face

question 98

Multiple Choice

A bond has five years to maturity, a $1000 face value, and a 5.5% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $846.11?

• A) 11.41%
• B) 13.31%
• C) 7.61%
• D) 9.51%

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Definitions:

LPC Contingency Model

A leadership theory proposed by Fred Fiedler suggesting that leadership effectiveness depends on the match between a leader's style of interacting with subordinates and the degree of control and influence in the situation.

High LPC Leader

A leader who scores high on Least Preferred Coworker scale, focusing more on relationships than task completion.

Leader-Member Relations

The quality of the interactions and relationships between a leader and their followers, affecting team dynamics and performance.

Leader's Interests

The personal or professional goals, desires, or concerns that influence a leader's decisions and actions.