A Bond Has Five Years to Maturity, a $1000 Face

question 98

Multiple Choice

A bond has five years to maturity, a $1000 face value, and a 5.5% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $846.11?

• A) 11.41%
• B) 13.31%
• C) 7.61%
• D) 9.51%

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Definitions:

Religious Thinking

A cognitive process that involves belief in supernatural forces or beings.

Piaget

A developmental psychologist known for his theory of cognitive development that describes how children's intellectual abilities evolve through stages.

Justice Perspective

A view that emphasizes fairness, equity, and moral rightness in the consideration of how laws and policies affect people.

Care Perspective

An ethical viewpoint highlighting the importance of interpersonal relationships and the welfare of others in moral deliberation.