Will Owns a Bond with a Make-Whole Call Provision

question 38

Multiple Choice

Will owns a bond with a make-whole call provision. The bond matures in 14 years but is being called today. The coupon rate is 9 percent with interest paid semiannually. What is the current call price if the applicable discount rate is 7.5 percent and the make-whole call provision applies?

• A) $932.84
• B) $957.11
• C) $1,074.13
• D) $1,110.28
• E) $1,128.66

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Definitions:

Distribution

In statistics and business, refers to the way in which values, assets, or products are spread out or disbursed across different areas or among various stakeholders.

T Cells

A type of white blood cell that plays a central role in the immune response, assisting in the protection against pathogens.

Macrophages

A variant of white blood cell that consumes and dismantles cellular rubbish, alien substances, microorganisms, and cancer cells via a mechanism termed phagocytosis.

Red Blood Cells

The cells in the blood which carry oxygen from the lungs to the body's tissues and carbon dioxide back to the lungs.