You Are Considering the Purchase of Hytec Bonds That Were

question 83

Multiple Choice

You are considering the purchase of Hytec bonds that were issued 14 years ago. When the bonds were originally sold, they had a 30-year maturity and a 14.375% coupon interest rate that is payable semiannually. The bond is currently selling for $1,508.72. What is the yield to maturity on the bonds?

• A) 8.50%
• B) 14.38%
• C) 11.11%
• D) 7.67%

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Definitions:

Behavioral

Pertains to the actions or reactions of a person or animal in response to external or internal stimuli.

Sociocultural

Pertaining to the combination of social and cultural factors and their influence on individual behavior and society.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of officially recognized psychiatric disorders.

Generalized Anxiety Disorder

A mental health disorder characterized by excessive, uncontrollable worry about a range of different topics.