Question
A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 8%. However,
A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 8%. However, the bond is callable at the end of 10 years at $1100, and at the end of 15 years at $1040. What is the price of the bond if the investor's yield (the "yield-to-worst") is 5.5%?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
