Question
A 3.40 percent coupon municipal bond has 12 years left to maturity and has a price quote of 96.75. The bond can be called in
A 3.40 percent coupon municipal bond has 12 years left to maturity and has a price quote of 96.75. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) What is the bond's current yield? What is the yield to maturity?
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The Finance Book
Authors: Stuart Warner, Si Hussain
2nd Edition
1292401982, 978-1292401980
