What Is the Coupon Rate of a Two-Year,$10,000 Bond with Semiannual

question 27

Multiple Choice

What is the coupon rate of a two-year,$10,000 bond with semiannual coupons and a price of $9543.45,if it has a yield to maturity of 6.8%?

• A)4.32%
• B)5.60%
• C)6.25%
• D)8.44%

---

Definitions:

Infantile Amnesia

The incapacity of adults to recall episodic memories, which are memories related to specific events or situations, from their early childhood years.

Egocentrism

The inability to differentiate between one's own perspective and someone else's perspective, often seen in early childhood development.

Conservation

In environmental science, it is the preservation and careful management of the environment and natural resources.

Concrete Operational

A stage in Piaget's theory of cognitive development, occurring roughly from ages 7 to 12, characterized by the development of logical thought about concrete objects but not yet abstract concepts.