A Company Issues a 20-Year,callable Bond at Par with a 6

question 50

Multiple Choice

A company issues a 20-year,callable bond at par with a 6% annual coupon.The bond can be called at par in three years or any time after that on a coupon payment date.The call price is $110 per $100 of face value.What is the yield to call?

• A)4%
• B)6%
• C)8%
• D)9%
• E)12%

---

Definitions:

Anemia

Disease that is characterized by a decrease in the number of red blood cells (erythrocytes); may be genetic in origin or the result of another disease or condition in the body.

Night Blindness

A condition characterized by difficulty seeing in low light or darkness, often due to a deficiency in vitamin A.

Muscle Spasms

Involuntary contractions of a muscle that can cause pain and limit movement.

MyPlate

A nutrition guide created by the U.S. Department of Agriculture, which illustrates the five food groups that are the building blocks for a healthy diet using a familiar mealtime visual, a plate.