What Is the Yield to Maturity, to the Nearest Percent

question 12

Multiple Choice

What is the yield to maturity, to the nearest percent, for the following bond: current price is $908, coupon rate is 11 percent, $1,000 par value, interest paid annually, eight years to maturity?

• A) 11 percent
• B) 12 percent
• C) 13 percent
• D) 14 percent

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Definitions:

Strange

Describes something unfamiliar, unusual, or unexpected.

Attachment Behaviors

Actions and patterns of behavior that are designed to achieve closeness to an attachment figure, typically aimed at maintaining safety and security.

Crawling

The action of moving on all fours, typically noted as an early form of locomotion in infants before they learn to walk.

Distress

Negative stress that results in anxiety, depression, or other negative feelings, contrasting with positive stress which can be motivating.