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A 5.5% coupon municipal bond has 16 years left to maturity and has a price quote of 92.55. The bond can be called in 9
A 5.5% coupon municipal bond has 16 years left to maturity and has a price quote of 92.55. The bond can be called in 9 years. The call premium is one year of coupon payments. Compute the bond's yield to maturity and yield to call. Assume interest payments are paid semiannually and a par value of $5,000.
YTM = 6.91%; YTC = 7.52% | |
YTM = 6.24%; YTC = 7.08% | |
YTM = 5.78%; YTC = 6.61% | |
YTM = 5.92%; YTC = 6.85% |
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