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A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 12%. However,
| A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 12%. 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 investors yield (the yield-to-worst) is 9.5%? |
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Handbook Of Research In Education Finance And Policy
Authors: Helen F. Ladd, Margaret E. Goertz
2nd Edition
0415838010, 978-0415838016
