Question
A 7-year, 11.55% monthly coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,210.85. If
A 7-year, 11.55% monthly coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,210.85. If the bond is currently trading at $747.51, the capital gains yield of the bond is closest to
A.
2.45%.
B.
4.72%.
C.
7.15%.
D.
9.45%.
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Pricing Analytics Models And Advanced Quantitative Techniques For Product Pricing
Authors: Walter R. Paczkowski
1st Edition
1138623938, 9781138623934
