A Company Issues a 10-Year,callable Bond at Par with 8

question 2

Multiple Choice

A company issues a 10-year,callable bond at par with 8% annual coupon payments.The bond can be called at par in one year after issue or any time after that on a coupon payment date.The call price is $105 per $100 of face value.What is the yield to call if this bond is called in one year?

• A)8%
• B)13%
• C)11%
• D)5%

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Definitions:

Privacy Rights

The rights of individuals to control or limit access to their personal information and to maintain confidentiality in personal matters.

Electronic Search

The use of electronic means to locate information or data, often through the internet or on digital devices.

Corporation

A legal entity that is separate and distinct from its owners and has rights, privileges, and liabilities independent of those of its shareholders.

Electronic Surveillance

The monitoring of behavior, activities, or information for the purpose of gathering evidence or intelligence, using electronic devices.