The Yield to Call Is a More Conservative Yield Measure

question 90

Multiple Choice

The yield to call is a more conservative yield measure whenever the price of a callable bond is quoted at a value

• A) Equal to or greater than par plus one year's interest.
• B) Equal to par.
• C) Equal to par less one year's interest.
• D) Less than par.
• E) Five percent over par.

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Definitions:

Calorie

A unit of energy measurement used to quantify the amount of energy derived from food consumed by an organism.

Carbohydrate

Organic compounds, consisting of carbon, hydrogen, and oxygen, that are broken down to release energy in the human body, including sugars, starch, and fiber.

Daily Caloric Intake

The total amount of calories a person consumes in a day, which can vary based on age, gender, activity level, and weight management goals.

Protein

Macromolecules consisting of long sequences of α-amino acids [H2N-CHR-COOH] in peptide (amide) linkage (elimination of H2O between the α-NH2 and α-COOH of successive residues). Protein is three-fourths of the dry weight of most cell matter and is involved in structures, hormones, enzymes, muscle contraction, immunologic response, and essential life functions. The amino acids involved are generally the 20 α-amino acids (glycine, l-alanine) recognized by the genetic code. Cross-links yielding globular forms of protein are often effected through the 2SH groups of two sulfur-containing l-cysteinyl residues, as well as by noncovalent forces (such as hydrogen bonds, lipophilic attractions).