Assume That the City of Tampa Sold an Issue of $1,000

question 11

Multiple Choice

Assume that the City of Tampa sold an issue of $1,000 maturity value,tax-exempt (muni) ,zero coupon bonds 5 years ago.The bonds had a 25-year maturity when they were issued,and the interest rate built into the issue was a nominal 4.40%,but with semiannual compounding.The bonds are now callable at a premium of 10% over the accrued value.What effective annual rate of return would an investor who bought the bonds when they were issued and who still owns them earn if they were called today?

• A) 7.81%
• B) 6.20%
• C) 6.39%
• D) 6.46%
• E) 5.36%

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Definitions:

Genes

Units of heredity made up of DNA, acting as instructions to make molecules called proteins, which play an essential role in determining the physical and functional traits of an organism.

Base Pairs

the building blocks of the DNA double helix, consisting of adenine (A) paired with thymine (T), and guanine (G) paired with cytosine (C).

Repeats Or Deletions

Refers to genetic mutations where segments of DNA are duplicated or missing, respectively, which can affect an organism's development or function.

Genes

Units of heredity made up of DNA that carry information for the development, function, and maintenance of organisms.