Assume that a 8-year, 8% bond is callable after 5 years at 105% of par value and the discount rate in todays market is 5%. Using the price-to-worst method, what is the value of this bond?

A) 1,000

B) 1,149

C) 1,170

D) 1,268

E) 1,010

An upward sloping yield curve means that:

A) Investors require lower returns for longer maturity Treasuries.

B) Investors require higher returns for longer maturity Treasuries.

C) Investors require higher returns for shorter maturity Treasuries.

D) Investors require the same return for both short and long-term Treasuries.

E) The yield curve is not related to required return on Treasuries.