Question
A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 11%. However,
A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 11%. 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 9.5%?
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
2nd Edition
0131471988, 978-0131471986
