Question
A 7 percent coupon bond has 10 years to maturity and could be called in three years. If the bond is called, investors will earn
A 7 percent coupon bond has 10 years to maturity and could be called in three years. If the bond is called, investors will earn 5.5 percent. The call premium is one year of coupon payments. If coupon payments are made semi-annually and par value is $1,000, what is the bond's yield to maturity?
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Urban Infrastructure Finance And Management
Authors: K. Wellman, Marcus Spiller
1st Edition
0470672188, 978-0470672181
