Question
11.7 Regal Health Plans issued a 12 percent annual coupon bond a few years ago. The bond now has 10 years remaining to maturity and
11.7 Regal Health Plans issued a 12 percent annual coupon bond a few years ago. The
bond now has 10 years remaining to maturity and sells for $1,100. The bond has a call
provision that allows Regal to call the bond in four years at a call price of $1,060.
a. What is the bonds yield to maturity?
b. What is the bonds yield to call?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
