You Own a Bond That Is Callable in 3

question 59

Multiple Choice

You own a bond that is callable in 3.5 years. The bond has a 7% coupon, paying interest semiannually, with a par value of 41,000. The yield-to-call is 5.6%. What is the call premium if the bond currently sells for $1,109.88%

• A) $60
• B) $70
• C) $80
• D) $90
• E) $100

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Definitions:

Air Pollution

The presence of harmful substances in the air that can lead to health problems for living organisms and damage to the environment.

Conserve Water

The practice of using water efficiently to reduce unnecessary waste.

Public Commitments

Declarations or promises made by individuals or organizations in front of others, often to be held accountable for achieving certain goals or adhering to specific values or courses of action.

Creditors

Individuals or entities that lend money or extend credit to others, expecting repayment in the future along with any agreed-upon interest or fees.