What Is the Yield to Maturity of a 10-Year, $1

question 6

Multiple Choice

What is the yield to maturity of a 10-year, $1 000 bond with a 5.2% coupon rate and semi-annual coupons if this bond is currently trading for a price of $884?

• A)6.23%
• B)5.02%
• C)12.46%
• D)6.82%

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Definitions:

Need for Cognition

A personality trait representing the tendency of an individual to engage in and enjoy effortful cognitive activities.

Extraversion

A personality trait characterized by outgoingness, high energy, and sociability.

Fear Arousals

The emotional response triggered by perceived threats, often used in persuasive communication to motivate behavior change by highlighting potential dangers.

Persuasion

An effort by a source to change the beliefs or attitudes of a target person through the use of information or argument.