A company issues a callable (at par) five-year, 7% 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 $110 per $100 of face value. What is the yield to worst of this bond when it is released?
A) 1.40%
B) 2.73%
C) 3.00%
D) 4.71%
Answer: B
Business
You might also like to view...
Supplemental Executive Retirement Plans (SERPs) are used for all but which one of the following?
(a) overcome ERISA-imposed limits on qualified pension plans (b) guarantee employees that future retirement payments will be made (c) promote executive fulfillment of contractual obligations (d) retain control of assets by employers
Business
A theory that describes how changes by top management in the structure and culture of an
organization affect the behavior of employees is best described as a: A) multi-level theory B) complexity theory C) hierarchical theory D) prescriptive theory
Business