A Bond Has a Face Value of $1,000 and a Call

question 78

Multiple Choice

A bond has a face value of $1,000 and a call price of $1,030.The bond is callable in 3.5 years and pays a 5 percent,semi-annual coupon.What is the current price if the yield to call is 6 percent?

• A) $912.36
• B) $927.19
• C) $966.25
• D) $993.24
• E) $1,009.01

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Definitions:

Human Skills

The abilities and competencies related to interpersonal relations and the management of people.

Mood Contagion

The psychological phenomenon where one person's mood or emotional state influences another's, often within groups or between individuals.

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An attribute or condition that is constructive, beneficial, or optimistic in nature.

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refers to something that is not desirable, favorable, or constructive.