Question
A callable bond pays annual interest of $60, has a par value of $1000, matures in 4 years but is callable in 3 years at
A callable bond pays annual interest of $60, has a par value of $1000, matures in 4 years but is callable in 3 years at a price of $1030, and has a value today of $980. The yield to call on this bond is _________.
Round to the third decimal space
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
