A 12% Coupon Bond with Semi-Annual Payments Is Callable in Five

question 81

Multiple Choice

A 12% coupon bond with semi-annual payments is callable in five years. The call price is $1,120. If the bond is selling today for $1,110, what is the yield to call?

• A) 12.03%
• B) 10.86%
• C) 10.95%
• D) 9.14%
• E) None of the options are correct.

---

Definitions:

Executive Orders

Directives issued by the president of the United States or state governors that have the force of law, often used to manage operations of the federal or state government.

Preponderance of the Evidence

The standard of proof in civil cases, where the burden of proof is met if the proposition is more likely to be true than not true.

Trespass

Unauthorized entry onto someone else's property without permission.

Justice

The principle of fairness and moral righteousness that guides the administration of law and ensures that individuals receive what they are due.