Yield to Maturity: Huan Zhang Bought a 10-Year Bond That

question 64

Multiple Choice

Yield to maturity: Huan Zhang bought a 10-year bond that pays 8.25 percent semiannually for $911.10. What is the yield to maturity on this bond?

• A) 7.6%
• B) 8.6%
• C) 9.6%
• D) 10.6%

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Definitions:

Capital Balances

Capital balances refer to the amount of money that the owners or partners have invested in a business, not including any profits or losses that the business may earn or incur.

Net Income

The amount of money that remains from revenues after all expenses, taxes, and costs have been subtracted.

Devotes Full Time

A commitment by an individual or employee to allocate all of their working hours to a specific job or task.

Tangible Assets

Physical and material assets that possess intrinsic value, such as machinery, buildings, and land.