Exhibit 11-2 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT PROBLEM(S)

question 33

Multiple Choice

Exhibit 11-2
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT PROBLEM(S)
XLR Corporation just issued a $1,000 par value bond with a 7% yield to maturity, twenty years to maturity, with an 8% semi-annual coupon rate.
-Refer to Exhibit 11-2. If market interest rates are constant, what will the price of the XLR Corporate bond be in three years?

• A) $904.29
• B) $1,097.63
• C) $1,098.50
• D) $1,102.85
• E) $1,105.62

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Definitions:

Self-Control

The skill to manage one's emotional responses, cognitive processes, and actions in situations that present temptations and immediate urges.

Worse

A term describing a decline or deterioration in quality, condition, or performance.

Boys

Boys are young male human beings who are typically distinguished from girls by their biological and physiological characteristics.

Transitional Object

A soft, cuddly object often carried to bed by a child to ease the separation from parents.