Question
2. The City of Providence currently has an BBB rated municipal bond outstanding, with a coupon rate of 4.84%, paid semi-annually, due to mature in
2. The City of Providence currently has an BBB rated municipal bond outstanding, with a coupon rate of 4.84%, paid semi-annually, due to mature in eight years, and callable in three years (at a call price of $1,025). If the bond has a par value of $1,000 and is currently priced at $1,046, calculate:
a. The bonds current yield
b. The bonds yield to maturity
c. The bonds yield to call
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Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
