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A callable bond pays annual interest of $60, has a par value of $1,000, matures in 20 years but is callable in 10 years at
A callable bond pays annual interest of $60, has a par value of $1,000, matures in 20 years but is callable in 10 years at a price of $1, 100, and has a value today of $1055.84. The yield to call on this bond is 6.00% 6.58% 7.20% 8.00% A coupon bond pays semi-annual interest is reported as having a price quotation of 117% of its $1,000 par value. If the last interest payment was made 2 months ago and the coupon rate is 6%, the invoice price of the bond will be (Assume 1 month = 30 days for this problem) $1, 140 $1, 170 $1, 180 $1, 200 You purchased a 5-year annual interest coupon bond one year ago. Its coupon interest rate was 6% and its par value was $1,000. At the time you purchased the bond, the yield to maturity was 4%. If you sold the bond immediately after receiving the first interest payment and the bond's yield to maturity had changed to 3%, your annual total rate of return on holding the bond for that year would have been approximately 5.0% 5.5% 7.6% 9.0% The one-year Treasury has a yield to maturity of 6% and the two-year Treasury has a yield to maturity of 7.5%. According to the expectations hypothesis, the expected one-year interest rate one year from now should be 7% 8% 9% 10%
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