Question
A corporate bond matures in 14 years. The bond has an 8 percent annual coupon rate with semiannual coupon payment and $1,000 par. The bond
A corporate bond matures in 14 years. The bond has an 8 percent annual coupon rate with semiannual coupon payment and $1,000 par. The bond is callable in five years from now at a call price $1,050. The price of the bond today is $1,705. What are the bond's annual yield to maturity and annual yield to call?
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The Evolution Of Finance
Authors: Barbara Guth
1st Edition
1633377261, 978-1633377264
