Expected return %_________________
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 15P
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Question
Showbiz, Inc., has issued eight-year bonds with a coupon of 7.33 percent and semiannual coupon payments. The market’s required
If the above bond is callable after five years at an 10.8 percent premium on the face value, what is the expected return on this bond? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25%.)
Expected return |
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%_________________ |
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