John spends $4,000 on a perpetuity that pays $150 each year. The yield to maturity of this perpetuity is 

A. 1.5%.
B. 3.75%.
C. 6.2 %.
D. 15%.


Answer: B

Business

You might also like to view...

As a user, the accountant might initiate the AIS acquisition

Indicate whether the statement is true or false

Business

All financial institutions, according to the Federal Trade Commission Safeguards Rule, must develop a security plan that does all of the following except

a. Designates one or more employees to coordinate the safeguard efforts b. Partner with the Federal Trade Commission to access confidential data when needed c. Designs and implements a safeguards program and regularly monitors and tests it d. Selects appropriate service providers and makes them implement safeguards

Business

In contrast to the adversarial relationship usually found between unions and management in Europe and the United States, ______ unions tend to identify strongly with the interests of the company.

Fill in the blank(s) with the appropriate word(s).

Business

In an interval estimation for a proportion of a population, the value of z at 99.2% confidence is

A. 2.65. B. 2.41. C. 1.96. D. 1.645.

Business