The National Insurance Corporation has $1,000 par value bonds with a coupon rate of 8% per year making semiannual coupon payments. If there are twelve years remaining prior to maturity and these bonds are selling for $876.40, what is the yield to maturity for these bonds?

YTM is 9.625%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 8% = $80/2  = $40 semiannually

Selling price = P = $876.40

Number of payment = n = 12 years x 2 = 24

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $40 + ( 1000 - 876.4 ) / 24 ] / [ (1,000 + 876.4 ) / 2 ]

Yield to maturity = 9.625%

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported

answer(d) the growth of consumption is likely to remain sluggish even as the economy begins to recover.;