Question
A 8-year RM1,000 par bond but currently priced at RM990 was issued by AT&T three years ago. The coupon rate is 10 percent per annum
A 8-year RM1,000 par bond but currently priced at RM990 was issued by AT&T three years ago. The coupon rate is 10 percent per annum that is paid semi-annually. It is callable 5 years from the issued date at a price of RM1,100.
(i) Calculate yield to maturity (YTM) of the bond. (3 marks)
ii) Calculate yield to call (YTC) of the bond. (3 marks)
Using financial calculator formula; example, FV= , PV=, N=,
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
