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:

Jury Trial

A legal proceeding in which a jury made up of citizens decides the outcome of a lawsuit or criminal case.

Complaint

A formal legal document initiating a lawsuit, outlining the plaintiff's claims against the defendant and the relief sought.

Summons

A legal document issued by a court or administrative agency, notifying an individual of their obligation to appear before the court or agency.

Interrogatory

A written question which one party sends to another during a lawsuit, requiring a written answer as part of the discovery process.