Use the Following Information to Answer the Question(s)below

question 46

Multiple Choice

Use the following information to answer the question(s) below.
Suppose you purchase a 20-year treasury bond with a 6% annual coupon ten years ago at par.Today the bond's yield to maturity has risen to 8% (EAR) .
-If you hold this bond to maturity,the internal rate of return you will earn on your investment will be closest to:

• A)5.0%.
• B)5.6%.
• C)6.0%.
• D)8.0%.

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Definitions:

Exception

An Exception in programming is an event that disrupts the normal flow of a program's execution, typically indicating errors.

Early Binding

A programming concept where the method to be called or the variable type is determined at compile time, leading to increased efficiency.

Compiler Efficiency

A measure of how effectively a compiler translates high-level code into optimized machine code, impacting the performance and size of the resulting executable.

Abstract Class Constructor

A constructor in an abstract class, which cannot be instantiated directly but can be called by constructors of its subclasses.