A bond that settles on June 7, 2008, matures on July 1, 2030, and may be called at any time after July 1, 2012, at a price of 108 The coupon rate on the bond is 8 percent and the price is 111 50 What is the yield to maturity and yield to call on this bond Use the NASD 30 360 day count basis ...

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A bond that settles on June 7, 2008, matures on July 1, 2030, and may be called

Question:

A bond that settles on June 7, 2008, matures on July 1, 2030, and may be called at any time after July 1, 2012, at a price of 108. The rate on the bond is 8 percent and the price is 111.50. What is the yield to and yield to call on this bond? Use the NASD 30/360-day count basis.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...