A Five-Year Bond with a $1 000 Face Value Has

question 67

Multiple Choice

A five-year bond with a $1 000 face value has a yield to maturity of 5.5% and its coupon rate is 6.0% paid annually. The dirty price of this bond exactly six months after its second coupon payment is closest to:

• A)$1 043.49
• B)$684.67
• C)$1 005.87
• D)$983.93

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Definitions:

Nitrogen Atom

A chemical element with atomic number 7, essential to life on Earth, and a common element in organic compounds.

CNC Bond Angle

The angle formed between two carbon atoms and a nitrogen atom connected in a molecule.

Hybridization

The concept in molecular chemistry and physics that describes the mixing of atomic orbitals to form new hybrid orbitals suitable for the pairing of electrons to form chemical bonds.

Indicated Atom

An atom within a molecule highlighted or specified for discussion or analysis.