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    Exam 5: The Cost of Money Interest Rates
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    What Is the Yield on a One-Year Corporate Bond with a $1,000
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What Is the Yield on a One-Year Corporate Bond with a $1,000

Question 41

Question 41

Multiple Choice

What is the yield on a one-year corporate bond with a $1,000 face value that pays a 12% annual dividend if it was purchased for $950 and held until maturity?


A) 12.0%
B) 12.6%
C) 17.0%
D) 17.9%

Correct Answer:

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