A Corporate Bond Is Quoted at a Price of 98

question 115

Multiple Choice

A corporate bond is quoted at a price of 98.96 and has a coupon rate of 4.8 percent, paid semiannually. What is the current yield?

• A) 4.24 percent
• B) 4.85 percent
• C) 5.36 percent
• D) 5.62 percent
• E) 4.66 percent

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Definitions:

Dermis

The layer of skin beneath the epidermis, containing nerve endings, sweat and sebaceous glands, and blood and lymph vessels, providing structure and elasticity.

Stratum Basale

The deepest layer of the epidermis, consisting of stem cells capable of undergoing cell division to form new cells, replenishing the skin.

The Matrix

A science fiction media franchise about a dystopian future in which reality as perceived by humans is actually a simulated reality called "the Matrix," created by sentient machines to subdue the human population.

The Free Edge

The portion of the nail that extends beyond the fingertip, not attached to the underlying nail bed.