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9. Consider a 30-year U.S. corporate bond paying 3.5 percent coupon. The bond has 17 years left to maturity and is currently priced at $980.
9. Consider a 30-year U.S. corporate bond paying 3.5 percent coupon. The bond has 17 years left to maturity and is currently priced at $980. The bond is callable in 8 years at a 6 percent call premium. If an investor can reinvest the call price at the prevailing market interest rate of 4 percent at the call date, what is his yield?
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