A Coupon Bond That Pays Interest of 4% Annually Has

question 73

Multiple Choice

A coupon bond that pays interest of 4% annually has a par value of $1,000, matures in 5 years, and is selling today at $785. The actual yield to maturity on this bond is ________.

• A) 7.24%
• B) 8.82%
• C) 9.12%
• D) 9.62%

Identify the characteristics that make an explanation logically strong, complete, and informative.

Distinguish between true and adequate hypotheses and the implications for explanations.

Recognize the importance of the relationship between hypotheses and explananda in constructing explanations.

Understand the role of auxiliary assumptions in connecting hypotheses to explananda.

---

Definitions:

Import Restraints

Measures applied by countries to limit the quantity of goods that can be imported, such as tariffs and quotas.

Trade Surpluses

A situation where a country's exports exceed its imports, leading to a positive balance of trade.

Balance of Trade

The difference between a country's exports and imports of goods, indicating the net earnings from trade.

Income Disparities

The difference in earnings among individuals or groups, often highlighting the economic inequality within a society.