Question
A 10-year, 12% semiannual coupon bond with a par value of $1000 may be called in 4 years at a call price of $1060. Thebond
A 10-year, 12% semiannual coupon bond with a par value of $1000 may be called in 4 years at a call price of $1060. Thebond sells for $1100. (Assume that the bond has just been issued.) (excel)
a) What is the bond's yield to maturity?
b) What is the bond's current yield?
c) What is the bond's capital gain or loss yield?
d) What is the bond's yield to call?
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The Handbook Of Fixed Income Securities
Authors: Frank Fabozzi, Steven Mann
8th Edition
0071768467, 978-0071768467
