A Bond Has Three Years to Maturity,a $2000 Face Value,and

question 62

Multiple Choice

A bond has three years to maturity,a $2000 face value,and a 6.3% coupon rate with annual coupons.What is its yield to maturity if it is currently trading at $1801?

• A)6.30%
• B)8.48%
• C)9.22%
• D)10.32%

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Definitions:

Sudoku

A puzzle game consisting of a 9x9 grid divided into nine 3x3 squares, where the player must fill the grid so each row, column, and square contains all digits from 1 to 9.

Generate-and-test

A problem-solving strategy that involves coming up with potential solutions and checking them to see if they solve the problem.

Working Backward

A problem-solving strategy that starts with the solution and works backward through the problem to figure out how to arrive at the solution.

Backtracking

A problem-solving technique that involves progressively checking and abandoning partial solutions until the right solution is found.