Solved

If a $5,000 Face-Value Discount Bond Maturing in One Year

Question 12

Multiple Choice

If a $5,000 face-value discount bond maturing in one year is selling for $5,000,then its yield to maturity is

A) 0 percent.
B) 5 percent.
C) 10 percent.
D) 20 percent.

Related Questions

Q7: The _ is the final amount that

Q8: For simple loans,the simple interest rate is

Q9: If a security pays $110 next year

Q10: The duration of a coupon bond increases<br>A)the

Q11: Your favorite uncle advises you to purchase

Q13: Examples of discount bonds include<br>A)U)S. Treasury bills.<br>B)corporate

Q14: Negative yields to maturity imply that bond

Q15: Which of the following bonds would you

Q16: Which of the following are TRUE for

Q17: Short-term bonds are subject to _ risk