You Own a Bond That Pays Semiannual Interest Payments of $38

question 61

Multiple Choice

You own a bond that pays semiannual interest payments of $38. The bond is callable in 2 years at a premium of $76. What is the callable bond price if the yield to call is 7.9%?

• A)$995.46
• B)$1,016.86
• C)$1,059.64
• D)$1,124.87
• E)$1,220.87

---

Definitions:

Lymphoid Tissue

Specialized connective tissue in the lymphatic system, containing large numbers of lymphocytes, that helps protect the body against infection.

Connective Tissue

A type of body tissue that supports, connects, or separates different types of tissues and organs in the body.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.

Mismatched Blood

Blood transfused into a person that is not compatible with their blood type, potentially causing serious reactions.