Question
A company has 5.5% coupon bonds outstanding with 7 years left to maturity that trade at $1074.34. The bonds are callable two years from today
A company has 5.5% coupon bonds outstanding with 7 years left to maturity that trade at $1074.34. The bonds are callable two years from today at a 5% call premium. Calculate the yield to maturity and yield to call on the bonds. Which return is an investor most likely to realize?
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
