Assume That You Purchase a Five-Year, $1,000 Par Value Bond

question 32

Multiple Choice

Assume that you purchase a five-year, $1,000 par value bond, with a 6 percent coupon and a yield of 7 percent. Immediately after you purchase the bond, yields rise to 8 percent and remain at that level to maturity. Calculate the realized horizon yield if you hold the bond to maturity. Interest is paid annually.

• A) 6.0 percent
• B) 7.11 percent
• C) 8.0 percent
• D) 15.25 percent
• E) 8.18 percent

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Definitions:

Horizontal Fit

Refers to the alignment between an individual's skills and interests and the job requirements or the compatibility between various HR practices within an organization.

Vertical Fit

The alignment between an individual's career path and the strategic objectives or needs of the organization.

HR Alignment

The process of ensuring that human resource practices are in harmony with the strategic goals and objectives of an organization.

Enforcing Fit

The process of ensuring that the employees' skills, values, and behaviors align with the organizational culture and requirements.