The Computation for the Yield to Call (YTC) Is the Same

question 133

Multiple Choice

The computation for the yield to call (YTC) is the same as that for the yield to maturity (YTM) , except that we substitute the _____ of the bond for the maturity (par) value and _____ for the years to maturity. 

• A)market price; the number of years until the bond can be first called
• B)face value; five years
• C)call price; the number of years until the bond can be first called
• D)principal value; 10 years
• E)issue price; the number of years until the bond can be first called

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Definitions:

Hallucinogen

A substance that causes alterations in perception, thinking, and feeling, leading to visual or auditory hallucinations.

Ecstasy

A state of overwhelming joy or intense emotional pleasure, sometimes also referring to a synthetic drug that can induce euphoria.

Psychoactive Drug

A chemical substance that changes brain function and results in alterations in perception, mood, consciousness, cognition, or behavior.

Visual Hallucinations

Perceptual experiences during which individuals see objects or events that have no reality or external source in the presence of a waking state.