The Johnson Corporation issues a bond which has a coupon rate of 10.20, a yield to maturity of
10.55, a face value of 1,000, and a market price of 850. Therefore, the annual interest payment is
A) 120.0. B) 101.75. C) 102. D) 105.50.
Question 2
The Rule of 72 is a rule of thumb for estimating the length of time necessary to double your money, given an interest rate.
Indicate whether the statement is true or false.