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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