Question
A 30 year 10% coupon bond is recalled at a call premium of 13% and reissued at year 15 when the prevailing yield is 5%.
A 30 year 10% coupon bond is recalled at a call premium of 13% and reissued at year 15 when the prevailing yield is 5%. What is the realized yield for an investor that bought a $1,000 bond at year 0, rolled over the call proceeds at year 15 into the reissued bond, and held the reissued bond to maturity (year 30)?
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Financial Accounting
Authors: Belverd E Needles, Marian Powers
10th Edition
0547193289, 9780547193281
