A 15-Year Bond Has a $1,000 Par Value Bond, a 4

question 90

Multiple Choice

A 15-year bond has a $1,000 par value bond, a 4 percent coupon, and a yield to maturity of 3.3 percent. Interest is paid annually. The bond's current yield is

• A) 3.7 percent.
• B) 4.0 percent.
• C) 3.3 percent.
• D) 7.3 percent.
• E) 8.3 percent.

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Definitions:

Equilateral Triangle

A polygon with three sides of equal length and three angles of equal measure, resulting in a symmetrical shape.

Natural Concept

A mental representation of objects or events from real-life experiences, as opposed to definitions precisely defined by rules.

Cohort

A group of individuals sharing a common characteristic, typically born around the same time, and studied to observe how specific variables affect them over time.

Concept

A mental category used to represent a class or group of objects, people, organizations, events, situations, or relations that share common characteristics or attributes.