A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date

On release, it has a price of $104 per $100 of face value. What is the yield to maturity of this bond when it is released?
A) 0.60%
B) 1.92%
C) 4.00%
D) 5.47%


Answer: D

Business

You might also like to view...

In its focus on bottom-line financial value, the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs

A) brand equity B) brand value chain C) customer tracking D) customer equity E) brand extension

Business

Examples of recurring costs include

a. software acquisition b. data conversion c. personnel costs d. systems design

Business

Focus groups represent the main method by which syndicated services collect data

Indicate whether the statement is true or false

Business

When the principal is trying to avoid being bound by the acts of the agent after the agency has ended, constructive notice is sufficient for:

A. persons who never knew of existence of the agency. B. persons who knew of the agency but had never dealt with it before termination. C. everyone who the principal was in contract with before the termination. D. persons who have dealt with the former agent.

Business