A Twenty Year Bond with a $1000 Face Value Was

question 12

Multiple Choice

A twenty year bond with a $1000 face value was issued with a yield to maturity of 4.5% and pays coupons semi-annually.After ten years,the yield to maturity is still 4.5% and the clean price of the bond is $960.09.After three more months go by,what would you expect the dirty price to be?

• A)$960.09
• B)$970.09
• C)$980.09
• D)Cannot be determined from information given.

---

Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, expenses, gains, and losses.

Trading Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and derivatives held by an institution or individual, primarily for the purpose of short-term trading and profiting from market movements.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Acquired Goodwill

Represents the premium paid over the fair market value of assets during the acquisition of a company.