A 20-Year Bond with a $1,000 Face Value Was Issued

question 67

Multiple Choice

A 20-year bond with a $1,000 face value was issued with a yield to maturity of 4.3% and pays coupons semi-annually. After ten years, the yield to maturity is still 4.3% and the clean price of the bond is $959.71. After three more months go by, what would you expect the dirty price to be?

• A) $978.71
• B) $969.21
• C) $997.71
• D) Cannot be determined from information given.

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Definitions:

Temperature

A physical quantity that expresses hot and cold. It is a measure of the thermal energy per particle of matter or radiation.

Proprioception

The body's ability to perceive its own position in space, important for coordination and balance.

Golgi Tendon Organs

Sensory receptors located at the junctions of muscles and tendons that monitor tension developed in muscles and help prevent muscle damage.

Muscle Spindles

Sensory receptors within the belly of muscles that primarily detect changes in the length of the muscle.