A one-year discount bond has a face value of $1000 and a price of $925. What is the yield to maturity on the bond? Report using percentages with two decimal places
What will be an ideal response?
The yield to maturity is ($1000-$925)/$925 = 8.11%
You might also like to view...
A payoff matrix shows:
A. the payoff to being a perfectly competitive firm. B. the demand curve facing a firm when there are only two firms. C. the payoffs for each possible combination of strategies. D. the payoff to being a monopolist.
Consumption taxes are generally viewed as
A. regressive. B. progressive. C. simple to calculate. D. multiplicative.
Relative to the United States, Europe has
A) higher unemployment. B) slower job growth. C) higher real wage growth. D) A and B. E) all of the above.
One of the benefits of money as a medium of exchange is that
A. it allows individuals to compare the relative value of goods. B. it allows for specialization that leads to economic efficiencies. C. it allows for private transactions such as trading vegetables for medical services. D. over time it will become more valuable so that individuals can purchase more goods and services.