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    Exam 3: What Do Interest Rates Mean and What Is Their Role in Valuation?
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    The Yield to Maturity of a One-Year,simple Loan of $500
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The Yield to Maturity of a One-Year,simple Loan of $500

Question 16

Question 16

Multiple Choice

The yield to maturity of a one-year,simple loan of $500 that requires an interest payment of $40 is


A) 5 percent.
B) 8 percent.
C) 12 percent.
D) 12.5 percent.

Correct Answer:

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