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Use the following data to answer questions #9 to # 13. A seven-year, 8% annual coupon bond is first callable in four years and subsequently callable every year until maturity. The bond is callable first at 102 on the coupon payment date in four years, at 101 in five years, and at par value on coupon payment dates thereafter. It is trading today at 105 . # 9. The bond's vield-to-first-call'is closest to: * A. 6.953 % *B. 6.956 %*C. 6.975 % D. 7.070 % # 10. The bond's vield-to-second-callis closest to: A. 6.953 % B. 6.956 % C. 6.975 % D. 7.070 % # 11. The bond's vield-to-third-call is closest to: A. 6.953 % *B. 6.956 % *C. 6.975 % *D. 7.070 % 12. The bond's yield-to-maturity is closest to: * A. 6.953 %*B. 6.956% *C 6.975 % *D. 7.070 % # 13. The bond's yield-to-worst is closest to: * A. 6.953 %*B. 6.956 % *C. 6.975 % D. 7.070%

Use the following data to answer questions #9 to # 13. A seven-year, 8% annual coupon bond is first callable in four years and subsequently callable every year until maturity. The bond is callable first at 102 on the coupon payment date in four years, at 101 in five years, and at par value on coupon payment dates thereafter. It is trading today at 105 . # 9. The bond's vield-to-first-call'is closest to: * A. 6.953 % *B. 6.956 %*C. 6.975 % D. 7.070 % # 10. The bond's vield-to-second-callis closest to: A. 6.953 % B. 6.956 % C. 6.975 % D. 7.070 % # 11. The bond's vield-to-third-call is closest to: A. 6.953 % *B. 6.956 % *C. 6.975 % *D. 7.070 % 12. The bond's yield-to-maturity is closest to: * A. 6.953 %*B. 6.956% *C 6.975 % *D. 7.070 % # 13. The bond's yield-to-worst is closest to: * A. 6.953 %*B. 6.956 % *C. 6.975 % D. 7.070%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Use the following data to answer questions #9 to # 13. A seven-year, 8% annual coupon bond is first callable in four years and subsequently callable every year until maturity. The bond is callable first at 102 on the coupon payment date in four years, at 101 in five years, and at par value on coupon payment dates thereafter. It is trading today at 105. # 9. The bond's vield - to - first - call'is closest to: * A. 6.953 % *B. 6.956 % * C. 6.975 % * D. 7.070% # 10. The bond's vield - to - second - callis closest to: A. 6.953% B. 6.956 % C. 6.975 % D. 7.070% # 11. The bond's vield - to-third - call is closest to: - A. 6.953 % * B. 6.956% *C. 6.975% *D. 7.070% 12. The bond's yield - to - maturity is closest to: * A. 6.953 % * B. 6.956 % * C .6.975 % * D. 7.070% #13. The bond's yield-to-worst is closest to: * A. 6.953 % * B. 6.956% *C. 6.975% D. 7.070%
Transcribed Image Text:Use the following data to answer questions #9 to # 13. A seven-year, 8% annual coupon bond is first callable in four years and subsequently callable every year until maturity. The bond is callable first at 102 on the coupon payment date in four years, at 101 in five years, and at par value on coupon payment dates thereafter. It is trading today at 105. # 9. The bond's vield - to - first - call'is closest to: * A. 6.953 % *B. 6.956 % * C. 6.975 % * D. 7.070% # 10. The bond's vield - to - second - callis closest to: A. 6.953% B. 6.956 % C. 6.975 % D. 7.070% # 11. The bond's vield - to-third - call is closest to: - A. 6.953 % * B. 6.956% *C. 6.975% *D. 7.070% 12. The bond's yield - to - maturity is closest to: * A. 6.953 % * B. 6.956 % * C .6.975 % * D. 7.070% #13. The bond's yield-to-worst is closest to: * A. 6.953 % * B. 6.956% *C. 6.975% D. 7.070%
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