In Which of the Following Situations Would the Yield to Worst

question 76

Multiple Choice

In which of the following situations would the yield to worst for a certain bond be that bond's yield to call?
I. The bond's coupon payments are high relative to market yields.
II. The bond price is at a discount.
III. The likelihood of the bond being called is high.

• A) I only
• B) II only
• C) I and II
• D) I and III

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Definitions:

Commission

A fee or percentage of a sale paid to an agent or employee for facilitating or completing a transaction.

Real Estate Broker

A licensed professional who acts as an intermediary between sellers and buyers of real estate, facilitating transactions for a commission.

Listing Contract

A contractual agreement between a property owner and a real estate broker authorizing the broker to find a buyer or tenant.

Open Listing

A non-exclusive contract allowing a property owner to sell their property themselves or to engage multiple agents without any obligation to pay commission except to the one who brings a valid offer.