USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 62

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The following information is given concerning a substitution swap. You currently hold a 25-year, Aa 10-percent coupon bond priced to yield 12 percent. As a swap candidate, you are considering a 25-year, Aa 10 percent coupon bond priced to yield 13 percent. Assume a reinvestment rate of 12 percent, semiannual compounding, and a one-year workout period.

-Refer to Exhibit 13.9. The dollar investment in the candidate bond is

• A) $1515.36.
• B) $853.50.
• C) $780.46.
• D) $779.13.
• E) $877.53.

---

Definitions:

Attractive

Having qualities that appeal to a sense of beauty or aesthetic preference.

Body Postures

The positions or arrangements of the body and its limbs, which can communicate nonverbal cues or affect physical and psychological states.

Hand Gestures

Movements of the hands and arms used to convey messages non-verbally, integral to communication and expression.

Eyes

Organs of vision that detect light and convert it into electro-chemical impulses in neurons for visual perception.