Exhibit 38-1 Refer to Exhibit 38-1. The yield on bond D is approximately

Name: Exhibit 38-1 Refer to Exhibit 38-1. The yield on bond D is approximately
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Question

Exhibit 38-1  Refer to Exhibit 38-1. The yield on bond D is approximately

Quizplus · Accepted Answer

The yield on bond D can be calculated by finding the intersection of the yield curve with the Y-axis at the point where the maturity of bond D is. Based on the exhibit, the maturity of bond D is 10 years, and the intersection appears to be at around 6.4 percent.