BUSN 380 Course Great Wisdom / tutorialrank.com BUSN 380 Course Great Wisdom / tutorialrank.com | Page 38

Assume you purchased a corporate bond at its current market price of
$850 on January 2, 2002. It pays 9 percent interest and it will mature
on December 31, 2011, at which time the corporation will pay you the
face value of $1,000.
a.
Determine the current yield on your bond investment at the time
of purchase.
b.

Determine the yield to maturity on your bond investment.

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BUSN 380 Week 4 Quiz Set 1
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Question 1. Question :
statements is false?

(TCO 5) Which of the following

No one is going to make you save the money; you need to start a
program.
To be useful, investment objectives must be very specific.
Investment goals can be different for each individual.
Because investment objectives deal with the future, it is useful to plan
more than 5 years in the future.
A long-term investment objective involves a time period of 2 years or
less.