A Bond Is Callable in 2 Years and Currently Has

question 19

Multiple Choice

A bond is callable in 2 years and currently has a yield to call of 4.8 percent. The bond has a coupon rate of 5 percent and pays interest semi-annually. The call premium is $50 and the face value is $1,000. What is the current price?

• A) $904.16
• B) $989.14
• C) $998.12
• D) $1,003.77
• E) $1,049.25

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Definitions:

A-B-C Analysis

A-B-C Analysis is a psychological approach that helps to understand the Antecedents, Behaviors, and Consequences of an action or event, commonly used in behavior modification.

Behavior Modification

A systematic approach to changing behavior through various techniques and strategies, such as reinforcement and punishment.

Safety Gear

Equipment designed to protect individuals from accidents or injuries in various environments.

A-B-Cs

An acronym for Antecedents, Behaviors, and Consequences, a framework in behavioral analysis to understand the effect of environmental factors on behavior.