A Bond Has a Face Value of $1,000 and a Call

question 6

Multiple Choice

A bond has a face value of $1,000 and a call price of $1,035. The bond is callable in 3 years and pays a 4.5%, semiannual coupon. What is the current price if the yield to call is 5%?

• A)$1,000
• B)$1,016.14
• C)$1045.39
• D)$1060.92
• E)$1,101.39

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Definitions:

Individualized Approach

A method tailored to meet the unique needs of an individual, considering their personal circumstances, preferences, and characteristics.

External Validity

The extent to which the findings of a study can be generalized to other situations, settings, or groups.

Federal Government

The national government of a federated state, which shares sovereignty with the individual state or provincial governments.

Animal Rights

The belief that animals are entitled to the possession of their own lives and that they should be afforded the same consideration as the similar interests of human beings.