Suppose You Have a 10%,20 Year Bond Traded at $1,120

question 48

Multiple Choice

Suppose you have a 10%,20 year bond traded at $1,120.If it is callable in 5 years at $1,150,what is the bond's approximate yield to call? Interest is paid quarterly.

• A) 7.78%
• B) 8.00%
• C) 9.40%
• D) 9.36%
• E) 9.72%

---

Definitions:

Chromosomes

In the human cell, threadlike structures that come in 23 pairs, one member of each pair originating from each parent, and that contain DNA.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Threadlike Structures

Often refers to the strands of DNA found in the cell nucleus which carry genetic information for the development, functioning, growth, and reproduction of all known organisms.

Neurogenesis

The process of generating new neurons in the brain, which continues throughout life and plays a role in learning, memory, and recovering from brain injury.