Question
A 12-year bond has a semi-annual coupon of 10 percent and a par value of $1,000, the nominal YTM is 9%. The bond can be
A 12-year bond has a semi-annual coupon of 10 percent and a par value of $1,000, the nominal YTM is 9%. The bond can be called in 5 years for $1180
What is the nominal YTC?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
YTC stands for Yield to Call which is the yield that an investor would receive if the bond is called at the first available call date In this case the ...
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
