You Own a Bond That Pays Semiannual Interest Payments of $38.The

question 22

Multiple Choice

You own a bond that pays semiannual interest payments of $38.The bond is callable in 2 years at a premium of $76.What is the callable bond price if the yield to call is 7.9 percent?

• A) $995.46
• B) $1,016.86
• C) $1,059.64
• D) $1,124.87
• E) $1,220.87