Question
A 20-year, 12% semiannual $1,000 par value coupon bond selling for $1,235 can becalled in 4 years for $1,060 i.What is its yield to maturity
A 20-year, 12% semiannual $1,000 par value coupon bond selling for $1,235 can becalled in 4 years for $1,060
i.What is its yield to maturity (YTM)? 9.38%
ii.What is its yield to call (YTC)? 6.56%
iii.What is the current yield of the bond? 9.72%
iv.What is its capital gains yield? 1230.7051/1235 1 = -0.35%
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
