Question
A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,319.00. The
A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,319.00. The bond sells for $950.50. (Assume that the bond has just been issued.). What is its yield to maturity?
Answer is either:
a).11.22%
b).10.26%
c).13.64%
d).12.07%
e).11.59%
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Analysis For Financial Management
Authors: Robert C. Higgins
10th International Edition
007108648X, 9780071086486
