A 20-Year Bond with a $1,000 Face Value Was Issued

question 67

Multiple Choice

A 20-year bond with a $1,000 face value was issued with a yield to maturity of 4.3% and pays coupons semi-annually. After ten years, the yield to maturity is still 4.3% and the clean price of the bond is $959.71. After three more months go by, what would you expect the dirty price to be?

• A) $978.71
• B) $969.21
• C) $997.71
• D) Cannot be determined from information given.

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Definitions:

Simple Reflex Action

A basic, rapid, and involuntary response to a stimulus by the nervous system.

No Interpretation

A directive or condition where received data or information is not to be analyzed or explained.

Decision Required

A situation or status indicating that a choice or judgment needs to be made to proceed.

Cerebrum

The largest part of the brain. It is divided into two hemispheres with four lobes in each hemisphere.