Question
1. Company A has just issued a callable (at par) 10-year, 6% coupon bond with annual coupon payments. The bond can be called at par
1. Company A has just issued a callable (at par) 10-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime there-after on a coupon payment date. It has a price of $102.
What is the bonds yield to maturity?
2. Company A has just issued a callable (at par) 10-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime there-after on a coupon payment date. It has a price of $102.
What is the bonds yield to call?
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The Ascendancy Of Finance
Authors: Joseph Vogl, Simon Garnett
1st Edition
1509509305, 978-1509509300
