Exhibit 19 -Refer to Exhibit 19

question 45

Multiple Choice

Exhibit 19.4
Use the Information Below for the Following Problem(S)
The following information is given concerning a substitution swap. You currently hold a 25 year, Aa 8 percent coupon bond priced to yield 10 percent. As a swap candidate you are considering a 25 year, Aa 8 percent coupon bond priced to yield 10.50 percent. Assume a reinvestment rate of 10 percent, semiannual compounding, and a one-year workout period.
$$\begin{array} { l c c } & \text { Current Bond } & \text { Candidate Bond } \\\hline \text { Dollar Investment } & \$ 817.44 & ? \\\text { Caupan } & 80.00 & 80.00 \\\text { i an One Coupon } & 2.00 & 2.20 \\\text { Principal Value at Year End } & 819.23 & 782.33 \\\text { Total Accrued } & 901.23 & 864.53 \\\text { Total Gain } & 83.79 & ? \\\text { Gain per Invested Dollar } & ? & ? \\\text { Realized Compound Yield } & ? & ?\end{array}$$
-Refer to Exhibit 19.4.The dollar investment in the candidate bond is

• A) $780.34
• B) $1483.25
• C) $1361.54
• D) $1413.95
• E) $1000.00

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Definitions:

Extended Family

A family grouping that extends beyond the nuclear family, including relatives such as grandparents, aunts, uncles, and cousins.

Multigenerational Kinship

The study or concept of familial relationships that span across multiple generations within a family.

Extended Family

Refers to a family group that extends beyond the immediate nuclear family to include other relatives such as grandparents, aunts, uncles, and cousins.

Cousins

The children of one's aunt or uncle, considered one degree of consanguinity removed from oneself.