Question
A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 5 years at
A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 5 years at $1,056, and currently sell at a price of $1,109.05.
- a.What is their nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.
b.What is their nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.
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Global Banking
Authors: Roy C Smith, Ingo Walter, Gayle DeLong
3rd Edition
0195335937, 9780195335934
