SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 4: Answer and Explanation

Question: 4

Which of the following will calculate the yield to maturity?

• A.
• B.
• C.
• D.

Correct Answer: B

Explanation:

B: Choice B correctly displays the calculation of yield to maturity. Choice A displays the calculation of yield to call. Choice C should have the numeral "2" instead of "2 x Years to Maturity" at the very bottom of the equation. Choice D should have the numeral "2" instead of "Years to Maturity" at the very bottom of the equation.