Your Firm Has Just Issued a 20-Year $1,000

question 59

Multiple Choice

Your firm has just issued a 20-year $1,000.00 par value,10% annual coupon bond for a net price of $964.00.What is the yield to maturity? Use a financial calculator to determine your answer.

• A)10.60%
• B)11.10%
• C)10.44%
• D)10.16%

---

Definitions:

CPA

Certified Public Accountant, a designation awarded to individuals who pass an examination and meet certain education and experience requirements in the field of accounting.

Equities

Financial instruments representing ownership interest in a company, commonly referred to as stocks, which entitle the holder to a share of the company's earnings and assets.

Accounts Receivable

Receivables from customers for goods delivered or services provided by a business, not yet paid for.

Creditor

A party or entity that lends money or extends credit to another party, typically expecting repayment in the future.