A Bond Has Three Years to Maturity,a $2000 Face Value,and

question 26

Multiple Choice

A bond has three years to maturity,a $2000 face value,and a 6.3% coupon rate with annual coupons.What is its yield to maturity if it is currently trading at $1801?

• A)6.30%
• B)8.48%
• C)9.22%
• D)10.32%
• E)9.88%

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Definitions:

Internalization

Conformity to a social norm prompted by true acceptance of the beliefs, values, and attitudes that underlie the norm.

Internalization

The process of incorporating or integrating ideas, values, and beliefs into one's own worldview or organizational practices.

Effect Dependence

Reliance on others due to their capacity to provide rewards and punishment.

Information Dependence

Reliance on others for information about how to think, feel, and act.