Use the Figure for the Question(s)below

question 30

Multiple Choice

Use the figure for the question(s) below.
-A risk-free,zero-coupon bond with a $5000 face value has ten years to maturity.The bond currently trades at $3650.What is the yield to maturity of this bond?

• A)3.197%
• B)3.284%
• C)3.465%
• D)3.699%

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Definitions:

Sampling Distribution

The probability distribution of a statistic obtained through a large number of samples drawn from a specific population.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean.

Standard Error

A measure that quantifies the variation or dispersion of a sample mean from the population mean.

Population Proportion

The fraction or percentage of a population that possesses a certain property or characteristic.