A Company Issues a Callable (At Par) 20-Year, 5% Coupon

question 42

Multiple Choice

A company issues a callable (at par) 20-year, 5% 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 $102 per $100 of face value. What is the yield to maturity of this bond when it is released?

• A) 2.40%
• B) 4.84%
• C) 5.60%
• D) 6.66%

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Definitions:

Self-Concept

Domain-specific self-evaluations.

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth.

Concrete

Refers to the stage of cognitive development in which children gain the ability to think logically about physical objects and events in their immediate environment.

Abstract

Referring to concepts or ideas that are not concrete or tangible, but rather, intangible and thought-based.