A 4% Home Depot bond with a face value of $1,000, semiannual coupon payments, and 25 years to maturity is callable in 5 years with a call premium equal to one years coupon payment. If the current market price. of the bond is $944.46, what is the bonds yield-to-call (YTC)? (State your answer as a percent rounded to the nearest one-hundredth of one percent.)

A 4% Home Depot bond with a face value of $1,000, semiannual coupon payments, and 25 years to maturity is callable in 5 years with a call premium equal to one years coupon payment. If the current market price. of the bond is $944.46, what is the bonds yield-to-call (YTC)? (State your answer as a percent rounded to the nearest one-hundredth of one percent.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...

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