A Company Issues a 10-Year,callable Bond at Par with 8

question 54

Multiple Choice

A company issues a 10-year,callable bond at par with 8% annual coupon payments.The bond can be called at par in one year after issue or any time after that on a coupon payment date.The call price is $105 per $100 of face value.What is the yield to call if this bond is called in one year?

• A)5%
• B)8%
• C)10%
• D)11%
• E)13%

---

Definitions:

Group Disagreement

The occurrence of differing opinions, views, or decisions among members within a group.

Seeking Information

The act of looking for or attempting to acquire data and facts to increase knowledge or understanding.

Social-Comparison Explanation

A hypothesis positing that people assess their own value and societal position by comparing themselves to others.

Polarization in Groups

The process by which opinions within a group grow increasingly extreme, splitting the group into opposing sides.