Question
A Corporate Bond with 10% Coupon Rate and remaining maturity of 6 years is currently selling for $ 1,130. This is a Callable Bond in
A Corporate Bond with 10% Coupon Rate and remaining maturity of 6 years is currently selling for $ 1,130. This is a Callable Bond in 2 years time. If called the issuer will pay the face value of Bond, $1,000, plus 10% of the face value. Your best friend wants to buy this Bond and plans to hold it for 3 years at the end of which he would sell it for $1,050. Various calculated Bond Yields are listed as Answer along with name of each type of yield as questions. Your task is to match the appropriate Answer with Question.
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A.
B.
C.
D.
Yield to Maturity (YTM)=?-
A.
B.
C.
D.
Yield to Call (YTC)=?-
A.
B.
C.
D.
Yield to Holding Period (YTH)=?-
A.
B.
C.
D.
Curr Yield =?A.8.85%B.6.68%C.7.90%D.5.45%
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