Question
A 3.40% coupon bond with 27 years left to maturity can be called in 23 years; The call premium is 1 year of coupon payments;
A 3.40% coupon bond with 27 years left to maturity can be called in 23 years; The call premium is 1 year of coupon payments; The bond is currently offered for sale at $919.35 (Assume interest payments are semiannual) - What is the bond's yield to maturity?
| 4.19% | ||
| 7.50% | ||
| 7.78% | ||
| 3.94% | ||
| 3.70% | ||
| 1.94% | ||
| 3.88% |
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