A 20-Year Bond with a $1000 Face Value Was Issued

question 62

Multiple Choice

A 20-year bond with a $1000 face value was issued with a yield to maturity of 4.5% and pays coupons semiannually. After ten years, the yield to maturity is still 4.5% and the clean price of the bond is $960.09. After three more months go by, what would you expect the dirty price to be?

• A) $970.09
• B) $980.09
• C) $960.09
• D) Cannot be determined from information given.

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Definitions:

Absenteeism

The habitual non-presence of an employee at their job, often without good reason.

Cultural Factor

An element of the social environment that affects individuals' behaviors, values, and perceptions, and can influence business practices and consumer preferences.

Immunity

The ability of an organism to resist harmful microorganisms from entering it, or the protection granted by law to certain officials or entities from legal action or prosecution.

Public Services

Services provided by the government to its citizens, often free of charge or at a subsidized rate, including education, healthcare, transportation, and law enforcement.