You Buy a Principal STRIP Maturing in 5 Years

question 3

Multiple Choice

You buy a principal STRIP maturing in 5 years. The price quote per hundred of par for the strip is 75.75%. Using semiannual compounding what is the promised yield to maturity on the STRIP?

• A) 5.632%
• B) 5.712%
• C) 2.816%
• D) 2.945%
• E) 4.566% [(100/75.75)^(1/(5x2)) - 1] x 2 = 5.632%

Learn how expense accounts are affected by transactions.

Identify the components and purposes of journalizing and posting in accounting.

Recognize the normal balance side for different types of accounts.

Understand the role of the drawing account and its impact on owner's equity.

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Definitions:

Outgroup Members

Individuals who are perceived as not belonging to one's own group, often seen as different or separate from the in-group.

Reciprocity Norm

A social norm that dictates that individuals should return the favor or kindness that others have done for them.

Social Influence Technique

Strategies or methods used to change or influence the attitudes, behaviors, or perceptions of others through social interaction.

Foot-In-The-Door Technique

A persuasion strategy that involves getting a person to agree to a small request as a precursor to getting them to accede to a larger request.