1) A 10% coupon bond with annual payments and 10 years to maturity is callable in 3 years at a call price of $1100. The
1) A 10% coupon bond with annual payments and 10 years to maturity is callable in 3 years at a call price of $1100. The bond is selling today for $975. The face value of the bond is $1000. What is the yield to call?
2) 10 points QUESTION 10 " 3-years ago, you purchased a newly-issued TIPS bond that has a 6% coupon rate, 5 years to maturity, and a par value of $1000. The yearly average inflation rate since purchase has been 4.2%. What is the current face value of the bond?"
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Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
