Consider a Corporate Bond with a $1,000 Face Value,10% Coupon

question 91

Multiple Choice

Consider a corporate bond with a $1,000 face value,10% coupon with semiannual coupon payments,5 years until maturity,and which currently is selling for (has a cash price of) $1,113.80.The next coupon payment will be made in 63 days and there are 182 days in the current coupon period.The clean price for this bond is closest to:

• A) $1,146.50
• B) $1,065.70
• C) $1,113.80
• D) $1,081.10

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Definitions:

Assumptive Close

A sales technique where the seller assumes that the customer has already decided to purchase and moves straight to the closing phase.

Closing Technique

A sales strategy or method employed to persuade a customer to make a purchase or commit to an action, effectively finalizing the deal.

Prospect Order

The action of a potential buyer indicating their intention to purchase a product or service, often considered a critical step in the sales process.

T-account Close

A selling technique where the pros and cons related to a sale are listed in a T-account format to help a customer make a decision.