Question
A 20-year, $4000 par value bond has 8% semiannual coupons and matures at par. In addition, the bond is callable at the end of the
A 20-year, $4000 par value bond has 8% semiannual coupons and matures at par. In addition, the bond is callable at the end of the 10ththrough the 15th years at 105% of par.
a) Find the price to yield 6% convertible semi-annually.
Price when called: ?
Price at maturity: ?
Price the investor should pay: ?
b) Find the price to yield 10% convertible semi-annually.
Price when called: ?
Price at maturity: ?
Price the investor should pay: ?
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Contemporary Financial Management
Authors: Don Cyr, Alfred Kahl, William Rentz, R. Moyer
1st Edition
017616992X, 978-0176169923
