Determine the Yield-To-Call (To the Nearest 0

question 45

Multiple Choice

Determine the yield-to-call (to the nearest 0.1 of a percent) of an LTV bond with a 14 percent coupon, that pays interest semiannually. The bond can be called in 7 years, has a call premium of $140, and is currently selling for $1,154.

• A) 12.0%
• B) 16.2%
• C) 13.7%
• D) 14%

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Definitions:

Open-system Perspective

An open-system perspective views organizations as entities that interact with their external environments, exchanging resources, and being influenced by external factors.

Multivariate Decision

A decision-making process that involves considering multiple variables or factors simultaneously to reach a conclusion or solution.

Contingency Approach

A management theory that suggests the most appropriate form of decision making, leadership, or organization is dependent on the specific variables of the situation.

Production-oriented Management

This approach to management prioritizes the efficiency of the production process and output over other factors, focusing on high production rates and cost minimization.