What Is the Yield to Maturity of a One-Year, Risk-Free

question 82

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 $9400 when released?

• A) 3.191%
• B) 6.000%
• C) 6.383%
• D) 0.009%

---

Definitions:

Interest in Earnings

A stake or claim on a portion of a company's profits, potentially through investments or ownership of equity in the company.

Interest in Firm

The ownership stake or share in the financial success and decision-making of a business.

Capital Account

An account on a country's balance of payments that records transactions involving the acquisition or disposal of capital assets.

Old Partner

A former member of a partnership who has ceased to be part of the entity, often due to retirement or agreement termination.