Question
A bond has a face value of $1,000 and a call price of $1,035. The bond is callable in 3 years and pays a 4.5%,
A bond has a face value of $1,000 and a call price of $1,035. The bond is callable in 3 years and pays a 4.5%, semiannual coupon. What is the current price if the yield to call is 5%?
Multiple Choice
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$1,000
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$1,016.14
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$1045.39
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$1060.92
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$1,101.39
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
