The bond market requires a return of 9.8 percent on the 5-year bonds issued by JW Industries. The 9.8 percent is referred to as the: Multiple Choice call rate. yield to maturity. face rate. coupon rate. current yield.

Yield to maturity

Explanation:

The yield to maturity (YTM) also known as the redemption yield or book yield of a bond is the overall interest that is gotten by an investor who purchases the bond at the market price, and holds the bond until it matures.

Yield to maturity is the rate at which the addition of all future amount gotten from a bond equals to the bond's current price. It is usually given in terms of Yearly Percentage Rate.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20