The Following Information Relates to Questions
a Bond with 5

question 5

Multiple Choice

The following information relates to Questions
A bond with 5 years remaining until maturity is currently trading for 101 per 100 of par value. The bond offers a 6% coupon rate with interest paid semi-annually. The bond is first callable in 3 years, and is callable after that date on coupon dates according to the following schedule: $\begin{array}{lc}\text { End of Year } & \text { Call Price } \\\hline 3 & 102 \\4 & 101 \\5 & 100 \\\hline\end{array}$

-The bond's annual yield-to-second-call is closest to:

• A) 2.97%.
• B) 5.72%.
• C) 5.94%.

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Definitions:

Cognition

The cognitive process of gaining knowledge and comprehension via thinking, experiencing, and sensory perception.

Auditory Hallucination

The perception of sound, such as voices, music, or noises, in the absence of any external auditory stimulus.

Hunger Pang

A sudden, sharp feeling of hunger, often experienced as a physical discomfort in the stomach.

Social Cognition

The study of how people process, store, and apply information about others and social situations; it involves understanding how we think about ourselves and others in the social world.