Assume That You Are Considering the Purchase of a 15-Year

question 77

Multiple Choice

Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of $1,000 and makes semiannual interest payments. If you require an 11.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

• A) $891.00
• B) $913.27
• C) $936.10
• D) $959.51
• E) $983.49

---

Definitions:

Mandarin

A term used to refer to the standard national language spoken in China, also known as Standard Chinese or Putonghua.

Translator

An individual who converts written or spoken content from one language to another, ensuring cultural and contextual relevance is maintained.

Agenda Setting

a theory in mass communication that suggests the media have the ability to determine which issues are considered important in the public sphere.

Action Priorities

The tasks or actions that have been deemed most important and urgent, requiring attention before others.