Assume ten-year bond issued three years ago that is callable at 103 five years after issuance. The annual coupon rate is 6% paid semi-annually. It currently trades at a price of 95. What is the yield to call? (Round to the nearest one decimal point and use the % symbol. 9.3% would be the form of a correct answer.)
Assume ten-year bond issued three years ago that is callable at 103 five years after issuance. The annual coupon rate is 6% paid semi-annually. It currently trades at a price of 95. What is the yield to call? (Round to the nearest one decimal point and use the % symbol. 9.3% would be the form of a correct answer.)
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 8P
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Assume ten-year bond issued three years ago that is callable at 103 five years after issuance. The annual coupon rate is 6% paid semi-annually. It currently trades at a price of 95. What is the yield to call? (Round to the nearest one decimal point and use the % symbol. 9.3% would be the form of a correct answer.)
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