What Is the Yield to Maturity of a Nine-Year Bond

question 30

Multiple Choice

What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year,has a $1,000 face value,and is currently priced at $1,407? Assume annual coupon payments.

• A)21.81%
• B)6.14%
• C)12.28%
• D)11.43%

---

Definitions:

Milgram

A psychologist best known for his controversial experiment on obedience, demonstrating people's willingness to follow authorities' orders, even to the point of harming others.

Psychological Retreat

Involves withdrawing into oneself or into an imagined safe space as a means of coping with stress or trauma.

Stimulus Overload

A condition where an individual is overwhelmed by too much sensory information, often leading to stress or difficulty in focusing.

Depersonalizing Others

Treating individuals as if they do not possess personal qualities or individuality, often leading to a lack of empathy and objectification.