What Is the YTM of a Four-Year Semi-Annual Pay Bond

question 17

Multiple Choice

What is the YTM of a four-year semi-annual pay bond with a par value of $1,000 and a 4 percent coupon rate when the bond is priced at $932.35?

• A) 2.96%
• B) 5.92%
• C) 5.95%
• D) 11.90%

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Definitions:

Fit to Eat

Safe and suitable for consumption as food without posing any health risk.

Reasonable Expectations

The anticipation of benefits, actions, or conditions based on what an ordinary person would consider fair under specific circumstances.

Inconsistent Warranties

Situations where the guarantees or assurances provided on products or services conflict with each other.

Dominant

Exerting power or influence over others; often used to describe a company or country in a position of authority within its field or region.