Question
A company has some bonds outstanding with maturity of 14 years and par value of $1,000. The coupon rate on those bonds is 10% with
A company has some bonds outstanding with maturity of 14 years and par value of $1,000. The coupon rate on those bonds is 10% with semi-annual payments and the yield to maturity is 9.75%. Those bonds can be called in 4 years at $1,150. What is the yield to call (YTC)?
| 11.09% | ||
| 8.80% | ||
| 9.90% | ||
| 7.78% | ||
| 12.40% |
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Statistics Principles And Methods
Authors: Richard A. Johnson, Gouri K. Bhattacharyya
7th Edition
8126557745, 470904119, 978-0470904114
