A Company Issues a Callable (At Par)ten-Year,7% Coupon Bond with Annual

question 47

Multiple Choice

A company issues a callable (at par) ten-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 yield to call of 3.1%.What is the price of this bond per $100 of face value when it is released?

• A)$103.78
• B)$100.00
• C)$107.00
• D)$96.36
• E)$133.10

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Definitions:

Cell Plate

Structure across a dividing plant cell that signals the location of new plasma membranes and cell walls.

Animal Cells

Eukaryotic cells that lack cell walls, chloroplasts, and have a more complex structure including a nucleus and other membrane-bound organelles.

Plant Cells

The basic structural and functional units of plants, distinguished by their ability to perform photosynthesis through organelles called chloroplasts and having cell walls made of cellulose.

Meiosis

A type of cell division that results in four daughter cells each with half the number of chromosomes of the parent cell, as in the production of gametes.