Question
A 6.75 percent coupon bond with 13 years left to maturity can be called in two years. The call price is $1067.5. It is offered
A 6.75 percent coupon bond with 13 years left to maturity can be called in two years. The call price is $1067.5. It is offered for sale at $919.75. What is the yield to call of the bond? Assume interest payments are paid semi-annually and par value is $1,000.
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
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