The Quoted Ask Yield on a 14 Year $1000 Par

question 14

Multiple Choice

The quoted ask yield on a 14 year $1000 par T-Bond with a 7% semiannual payment coupon and a price quote of 98:15 is

• A) 7.00%.
• B) 7.18%.
• C) 7.30%.
• D) 3.59%.
• E) 3.63%. $984.688 = $35  PVIFA (r%, 28) + $1,000  PVIF (r%, 28 yrs)

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Definitions:

Finished Goods Inventories

Products that have completed the manufacturing process but have not yet been sold to customers.

Direct Labor Costs

The wages paid to workers directly involved in the production of goods or services.

Cash Disbursements

Payments made by a business, including expenses, debt payments, and purchases of assets.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured.