Question
29. An issue of 9.60% senior debentures matures on December 15, 2029 and currently trade at 104.65 Interest is paid semi-annually and December 15 is
29. An issue of 9.60% senior debentures matures on December 15, 2029 and currently trade at 104.65 Interest is paid semi-annually and December 15 is a coupon anniversary date. [Assume today is December 15, 2020 so term to maturity is 9 years.] The debentures are callable on or at any time thereafter on the dates shown on the schedule below for the prices shown on the schedule. First call is 4 years away. What is the Yield to Maturity of the bonds?
December 15, 2020-2023 2024 2025 2026 2027 2028
Call Price No Call 104% 103% 102% 101% 100.5%
- 8.21%
- 8.35%
- 8.84%
- 9.04%
- 9.13%
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Real Estate Finance Theory And Practice
Authors: Terrence M. Clauretie, G. Stacy Sirmans
4th Edition
032414377X, 978-0324143775
