Which $1,000 bond has the higher yield to maturity, a twenty-years bond selling for $800 with a current yield of 15% or a one-year bond selling for $800 with a current yield of 5%?

30%

Explanation:

The computation is shown below:

Here we considered a long term bond that time period should be 15 years or more

Now as we know that

Current yield is

= Current payment ÷ Pb

5% = Current payment ÷ $800

The Current payment is $40

Now the yield to maturity is

-$800 = $50 ÷  (1 + i) + $1,000 ÷ (1 + i) + $1,040 ÷ (1 + i)

So, i = 30%

The same is to be chosen

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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