Question
A 7.25% coupon bond with 25 years left to maturity can be called in 5 years. The call premium is one year of coupon payments.
A 7.25% coupon bond with 25 years left to maturity can be called in 5 years. The call premium is one year of coupon payments. It is offered for sale at $1066.24. What is the yield to call of the bond? (please draw time line and use financial calculator. Do not forget to multiply semi-annual rate by two to get annualized YTC
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Handbook Of Financial Risk Management
Authors: Thierry Roncalli
1st Edition
1138501875, 978-1138501874
