Question
A bond with 5 years remaining until maturity and a face value of $1,000is currently priced at 101. The bond offers a 6% coupon rate
A bond with 5 years remaining until maturity and a face value of $1,000is currently priced at 101. The bond offers a 6% coupon rate with interest paid semiannually. The bond is first callable in 3 years, and is callable after that date on coupon dates according to the following schedule:
End of Year
Call Price
3
102
The bond's annual yield-to-call isclosestto:
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
