Question
6.40 percent coupon bond with 28 years left to maturity can be called in nine years. The call premium is one year of coupon payments.
6.40 percent coupon bond with 28 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 $1,106.25. What is the yield to call of the bond? (Assume interest payments are semiannual.)
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
