Exhibit 19 -Refer to Exhibit 19

question 8

Multiple Choice

Exhibit 19.6
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 10 percent coupon bond priced to yield 12 percent. As a swap candidate you are considering a 25 year, Aa 10 percent coupon bond priced to yield 13 percent. Assume a reinvestment rate of 12 percent, semiannual compounding, and a one-year workout period.
$$\begin{array} { l c c } & \text { Current Bond } & \text { Candidate Bond } \\\hline \text { Dollar Investment } & \$ 842.38 & ? \\\text { Caupan } & 100.00 & 100.00 \\\text { i an One Coupon } & 3.0 & 2.75 \\\text { Principal Value at Year End } & 843.50 & 780.46 \\\text { Total Accrued } & 946.50 & 883.21 \\\text { Total Gain } & 104.12 & ? \\\text { Gain per Invested Dollar } & ? & ? \\\text { Realized Compound Yield } & ? & ?\end{array}$$
-Refer to Exhibit 19.6.The realized compound yield on the current bond is

• A) 10.00%
• B) 11.9985%
• C) 12.9397%
• D) 13.9399%
• E) 12.3585%

---

Definitions:

Naves

The central part of a church building intended to accommodate most of the congregation, extending from the entrance (the narthex) to the altar.

Crossing Square

The area in a church formed by the intersection (crossing) of a nave and a transept of equal width, often used as a standard module of interior proportion.

Proportions

In art and design, proportions refer to the relationship in size and shape between different parts of an object or figure, crucial for achieving balance and aesthetic appeal.

Saint-Sernin

A Romanesque church located in Toulouse, France, known for its architectural significance and role in the pilgrimage route to Santiago de Compostela.