Question
A 7.15 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of coupon
A 7.15 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,096.85. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
| Yield to call | % |
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor L Bernard
3rd Edition
0324118945, 9780324118940
