A Company Issues a Callable (At Par)ten-Year,6% Coupon Bond with Annual

question 30

Multiple Choice

A company issues a callable (at par) ten-year,6% 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 $104 per $100 of face value.What is the yield to worst of this bond when it is released?

• A)0.60%
• B)1.92%
• C)4.00%
• D)5.47%
• E)6.00%

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Definitions:

Oxygen-Deficient Blood

Blood that carries less oxygen than normal, often as a result of respiratory or circulatory problems.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Physical Activity

Any movement that requires energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.

Structured Exercise

Physical activities that are planned, organized, and repetitive for the purpose of conditioning any part of the body.