A Risk-Free,zero-Coupon Bond with a $5000 Face Value Has Ten

question 102

Multiple Choice

A risk-free,zero-coupon bond with a $5000 face value has ten years to maturity.The bond currently trades at $3650.What is the yield to maturity of this bond?

• A)3.197%
• B)3.284%
• C)3.465%
• D)3.699%
• E)3.747%

---

Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate overhead costs to products or job orders, calculated before the accounting period.

Machine-Hours

A measurement used in allocating manufacturing costs to products, representing the number of hours a machine is operated during the production process.

Predetermined Overhead Rate

The predetermined overhead rate is calculated before a period begins by dividing estimated overhead costs by an estimated allocation base, used to assign overhead costs to products.

Machine-Hours

A measure of production time, describing how many hours a machine is in operation.