Question
A 5.15% coupon bond with 12 years left to maturity can be called in 7 years; The call premium is 1 year of coupon payments;
A 5.15% coupon bond with 12 years left to maturity can be called in 7 years; The call premium is 1 year of coupon payments; The bond is currently offered for sale at $890.07 (Assume interest payments are semiannual) - What is the bond's yield to call?
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Finance Basics 20 Minute Manager
Authors: Harvard Business Review
1st Edition
1625270852, 978-1625270856
