Business, 05.05.2020 14:57 nsuleban8663

A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. the bond currently sells at a yield to maturity of 7% (3.5% per half-year). (lo 10-4)

a. what is the yield to call?

b. what is the yield to call if the call price is only $1,050?

c. what is the yield to call if the call price is $1,100 but the bond can be called in two years instead of five years?

Answers: 3

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A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call p...

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