Calculate your annual yield to maturity

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1. Determine YTM. Grand Scale Productions Corporation currently sells a bond with 10 years left until maturity. The4 bond has a par value of $1,000, a market price of $1,100 but suppose you buy the bond for $1,150. The coupon rate is 8% and payments are made annually. The bond may be called after five years have elapsed for $1050. Calculate your annual yield to maturity.

6.96%

6.60%

5.96%

5.26%

2. Which of the following statements is true?

a. A good measure of the debt burden is the debt-to-GDP ratio.

b. The size of the national debt is not as important as the ability of the government to repay it.

c. The size of the national debt is not as important as whether that money is spent wisely.

a and b are correct.

All of the above are correct.

Reference no: EM132024576

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