Question
A corporate bond pays interest annually and has 4 years to maturity, a face value of $1,000 and a coupon rate of 3.8%. The bond's
A corporate bond pays interest annually and has 4 years to maturity, a face value of $1,000 and a coupon rate of 3.8%. The bond's current price is $1,000. It is callable at a call price of $1,050 in one year.
YTM = 3.8%
What is the bond's yield to call?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
