Question
A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 5%. However,
A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 5%. 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 3.5%?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
