Question
A 10-year, 6.75% semiannual coupon bond with a par value of $1000 of the A.C.D. Company may be called in four years at a call
A 10-year, 6.75% semiannual coupon bond with a par value of $1000 of the A.C.D. Company may be called in four years at a call price of $1,060. The bond sells for $1,100. What is the bonds yield to maturity?
a. 5.94%
b. 6.75%
c. 5.44%
d. 2.72%
e. None of these are correct
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
