A Company Issues a Callable (At Par) Five-Year, 7% Coupon

question 47

Multiple Choice

A company issues a callable (at par) five-year, 7% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $110 per $100 of face value. What is the yield to maturity of this bond when it is released?

• A) 1.40%
• B) 2.80%
• C) 4.71%
• D) 5.66%

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COSEWIC

The Committee on the Status of Endangered Wildlife in Canada, responsible for assessing the conservation status of species at risk.

Canadian Wildlife

encompasses the diverse range of animals, birds, and marine species native to Canada, thriving in its varied climates and ecosystems.

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Advice or guidelines developed through scientific research and analysis.

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The inherent human inclination to affiliate with nature and living organisms, theorized to be a fundamental aspect of human nature.