A Ten-Year,zero-Coupon Bond with a Yield to Maturity of 6

question 30

Multiple Choice

A ten-year,zero-coupon bond with a yield to maturity of 6% has a face value of $1000.An investor purchases the bond when it is initially traded,and then sells it four years later.What is the internal rate of return (IRR) of this investment,assuming the yield to maturity does NOT change?

• A)0.26%
• B)3.07%
• C)6.00%
• D)7.65%
• E)8.14%

Recognize the treatment of sales taxes in financial records.

Understand the adjustments for returns and their effect on inventory and revenue accounts.

Differentiate between types of invoices and their roles in accounting.

Grasp the comprehensive framework of revenue recognition and its steps.

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Definitions:

Duodenal

Pertaining to the duodenum, the first part of the small intestine immediately beyond the stomach.

Crohn Disease

A chronic inflammatory bowel disease affecting the lining of the digestive tract.

Volvulus

A condition where a loop of the intestine twists around itself and the mesentery that supports it, potentially causing bowel obstruction.

Cirrhosis

A chronic liver disease marked by the replacement of healthy liver tissue with scar tissue, often due to alcohol abuse or hepatitis infections.