Question
A 6.75% copon bond has 10 years until maturity. The par value is $1,000 with semi-annual payment. Its current price is $1,200. It is likely
A 6.75% copon bond has 10 years until maturity. The par value is $1,000 with semi-annual payment. Its current price is $1,200. It is likely that this bond may be called at a price of $1,300 in 2 years. Calcute YTM (using the RATE Function in excel) and Yield to call (using RATE funtion in excel).
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
