Question
9. FS Corporate has bonds outstanding with 10 year till maturity They have an 11% annual coupon payment, and their current price is $1185. The
9. FS Corporate has bonds outstanding with 10 year till maturity They have an 11% annual coupon payment, and their current price is $1185. The bonds may be called in 5 years at 110% of face value. (Call price is $1100)
. a) What is the YTM?
b) What is the YTC if the bonds are called in 5 years?
c) Which yield might the investors expect to earn? Why?
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Personal Finance For Teens And Young Adults A Practical Guide To Money Management For The Real World
Authors: Eric Mills
1st Edition
1960358154, 978-1960358158
