Consider a Bond with Exactly Three Years to Maturity,a Face

question 12

Multiple Choice

Consider a bond with exactly three years to maturity,a face value of $100 and a coupon interest rate of 6.6% p.a. ,payable half yearly.If the required yield is 7.2% p.a. ,what is the price of the bond?

• A)$98.40
• B)$98.04
• C)$98.00
• D)Cannot be calculated as not enough information is provided.

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Definitions:

Consciousness

The state of being awake and aware of one's surroundings and everything in one's mind at a given moment.

Behaviour

The actions, reactions, or mannerisms made by an organism, individual, or system in response to the environment or stimuli.

Applied Psychology

The use of psychological principles and theories to solve real-world problems, including in areas such as health, education, and business.

Functionalism

A theory in social sciences that emphasizes the functional role of elements within a structure, examining how they contribute to the coherence and stability of a system.