Question
1. A 6.65 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of
1. A 6.65 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,126.45. What is the yield to call of the bond?(Assume interest payments are semiannual.)
| 2. A 5.85 percent coupon bond with 14 years left to maturity can be called in nine years. The call premium is one year of coupon payments. It is offered for sale at $1,167.50. What is the yield to call of the bond? (Assume interest payments are semiannual.) |
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
