What Is the Yield to Maturity of a Five-Year,$5000 Bond

question 61

Multiple Choice

What is the yield to maturity of a five-year,$5000 bond with a 4.5% coupon rate and semiannual coupons if this bond is currently trading for a price of $4876?

• A)4.30%
• B)5.07%
• C)6.30%
• D)8.60%

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Definitions:

Naturalistic Observation

A research method that involves observing subjects in their natural environment without interference.

Clinical Observation

The practice of assessing and monitoring patients in a healthcare setting, utilizing direct observation to inform diagnosis or treatment plans.

Direct Observation

A research method where phenomena are studied in their natural setting without manipulation.

Evolutionary Psychology

An approach in psychology that examines cognitive traits and behavior through the lens of evolutionary biology, proposing that many aspects of human psychology are the result of adaptive evolution.