A 5-Year Bond Has a Face Value of $1,000,matures in 5

question 57

Multiple Choice

A 5-year bond has a face value of $1,000,matures in 5 years,pays interest semiannually,and has a coupon rate of 6.35 percent.The next interest payment will be paid 2 months from today.What is the dirty price of this bond if the market rate of return is 6.2 percent?

• A)$985.20
• B)$993.70
• C)$1,006.37
• D)$1,027.54
• E)$1,014.10

---

Definitions:

Risks

Potential events or actions that could lead to loss or harm, in the context of business or personal decisions, emphasizing the assessment and management of uncertainty.

Self-monitoring Abilities

The capacity of an individual to regulate their behavior to adapt to different social situations or environments.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states, such as triumph, despair, pride, and shame.

Untruthful

Describes a statement, claim, or representation that is false, inaccurate, or deceptive.