Galt Industries Has Just Issued a Callable,$1000 Par Value,five-Year,6% Coupon

question 16

Multiple Choice

Galt Industries has just issued a callable,$1000 par value,five-year,6% coupon bond with semiannual coupon payments.The bond can be called at par in three years or anytime thereafter on a coupon payment date.If the bond is currently trading for $978.94,then its yield to maturity is closest to:

• A)3.4%.
• B)6.0%.
• C)6.5%.
• D)6.8%.

---

Definitions:

International Companies

Businesses that operate across national borders, engaging in international trade or services.

U.S. Standards

Refers to the guidelines, principles, and procedures established in the United States for various activities, including accounting, manufacturing, and other industries.

GAAP

The standardized guidelines for accounting and financial reporting, providing transparency and consistency across financial statements and industries.

FASB

Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards.