A firm's bond has a maturity of 10 years with a $1,000 face value, have a 8% coupon rate paid semi-annually. The bonds are callable in 5 years at $1,050. They currently sell at a price of $1,100.  What is Yield to maturity?

Intermediate Financial Management (MindTap Course List)
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ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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A firm's bond has a maturity of 10 years with a $1,000 face value, have a 8% coupon rate paid semi-annually. The bonds are callable in 5 years at $1,050. They currently sell at a price of $1,100. 

What is Yield to maturity? 

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Bonds are the debt securities which are issued by the corporations or the governments to arrange the funds. Bonds provide fixed income to the investors.

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