Question
A corporate bond pays interest twice a year and has 19 years to maturity, a face value of $1,000 and a coupon rate of 6.1%.
A corporate bond pays interest twice a year and has 19 years to maturity, a face value of $1,000 and a coupon rate of 6.1%. The bond's current price is $1,410.47. It is callable starting 13 years from now (years to call) at a call price of $1,068.
a) What is the bond's (annualized) yield to maturity?
b) What is the bond's (annualized) yield to call?
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The Oxford Handbook Of Quantitative Asset Management
Authors: Bernd Scherer, Kenneth Winston
1st Edition
0199553432, 978-0199553433
