Question
A corporate bond pays interest twice a year and has 22 years to maturity, a face value of $1,000 and a coupon rate of 6.2%.
A corporate bond pays interest twice a year and has 22 years to maturity, a face value of $1,000 and a coupon rate of 6.2%. The bond's current price is $1,471.22. It is callable 16 years from now (years to call) at a call price of $1,081.
A) What is the bond's (annualized) yield to call?
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
20th Edition
1609303164, 978-1609303167
