Yield to Maturity: Shawna Carter Wants to Invest Her Recent

question 20

Multiple Choice

Yield to maturity: Shawna Carter wants to invest her recent bonus in a four-year bond that pays a coupon of 11 percent semiannually. The bonds are selling at $962.13 today. If she buys this bond and holds it to maturity, what would be her yield? (Round to the closest answer.)

• A) 11.5%
• B) 11.8%
• C) 12.5%
• D) 12.2%

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Definitions:

Important Decisions

Choices that have a significant impact on an individual's life or circumstances.

Trivial Incidents

Events or occurrences that are of little importance, insignificant in scale or consequence.

Rene Descartes

A 17th-century French philosopher, mathematician, and scientist who is often referred to as the father of modern philosophy.

Authority Structure

The framework within which power and control are distributed and exercised within an organization or society.