Question
A 20-year maturity, 7.0% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,200. The bond currently sells at
A 20-year maturity, 7.0% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,200. The bond currently sells at a yield to maturity of 6.0% (3.00% per half-year).
What is the yield to call if the call price is only $1,150?
Yield to call= %?
please show work
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
