Yield to Call on a Bond with a Coupon Rate

question 87

Multiple Choice

Yield to call on a bond with a coupon rate of 6% paid semi-annually, 5 years to maturity, a par value of $1,000 and a selling price of $1,125, callable after 5 years at $1,050 is

• A) 4.12%.
• B) 6.54%.
• C) 3.27%.
• D) 2.74%.

---

Definitions:

Marketing Mix

The set of controllable tactical marketing tools, typically encapsulated as product, price, place, and promotion, that a company uses to produce a desired response from its target market.

Distribution

The process of making a product or service available for use or consumption by a consumer or business user.

Metamarket

A cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries.

Metamediary

A digital intermediary that connects buyers and sellers or provides information and services across multiple industries or sectors online.