What Is the Yield to Maturity of a One-Year,risk-Free,zero-Coupon Bond

question 106

Multiple Choice

What is the yield to maturity of a one-year,risk-free,zero-coupon bond with a $10,000 face value and a price of $9600 when released?

• A)3.212%
• B)4.000%
• C)4.167%
• D)9.600%
• E)5.140%

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Definitions:

Two-Tier Wage System

A remuneration model where two distinct pay scales exist for employees within the same organization, often based on seniority or job role.

Labor Costs

The total sum of all wages, benefits, and taxes that a business must pay for its employees.

Existing Salaries

The current compensation rates for employees within an organization or industry.

Two-Tier Wage Plans

Compensation strategies that offer a higher pay scale for incumbent workers while new hires are brought in at a lower wage for the same job.