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3. a security will make payments of 25 per month plus...

# Question: a security will make payments of 25 per month plus...

###### Question details

A security will make payments of $25 per month, plus$1000 at maturity. The price of this security is $2000. Which of the following is true? If the time to maturity is 4 years then the yield to maturity is 10.05% If the time to maturity is 7 years then the effective rate is 3.34% If the time to maturity is 7 years then the effective rate is 10.52%% If the time to maturity is 4 years then the effective rate is 10.52% If the time to maturity is 7 years then the effective rate is 10.05% A security will make payments of$25 per month, plus $1000 at maturity. The price of this security is$2000. Which of the following is true?

 If the time to maturity is 7 years then the yield to maturity is 0.84% If the time to maturity is 4 years then the yield to maturity is 3.34% If the time to maturity is 4 years then the period rate is 10.05% If the time to maturity is 7 years then the period rate is 0.84% If the time to maturity is 4 years then the yield to maturity is 10.05%