Question
A bond has a 5% annual coupon with 20 years to maturity but can be called in 5 years. The face amount is $1000, but
A bond has a 5% annual coupon with 20 years to maturity but can be called in 5 years. The face amount is $1000, but the investor will earn an extra $25 if called for a value of $1025 in 5 years. Current price is $945.
Please calculate the yield-to-call of the bond.
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The Handbook Of Loan Syndications And Trading
Authors: Marsh, Lee Shaiman, Bridget Marsh
2nd Edition
1264258526, 978-1264258529
