What Is the Yield to Maturity of a Ten-Year,$1000 Bond

question 28

Multiple Choice

What is the yield to maturity of a ten-year,$1000 bond with a 5.2% coupon rate and semiannual coupons if this bond is currently trading for a price of $884?

• A)5.02%
• B)6.23%
• C)6.82%
• D)12.46%

---

Definitions:

Economists

Specialists in understanding the generation, allocation, and utilization of products and services.

Production Possibilities Frontier

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Economy Can Produce

The maximum quantity of goods and services an economy can generate when it utilizes all its resources efficiently.

Combinations Of Output

Various possible quantities of different goods that can be produced or provided given certain resources and technology.