Question
A firms bonds have a maturity of 10 years with a $1,000 face value, have a 5% semi-annual coupon, are callable in 5 years at
A firms bonds have a maturity of 10 years with a $1,000 face value, have a 5% semi-annual coupon, are callable in 5 years at $1,050, and currently sell at a price of $1,025.
What is the yield to call on this bond? What is the yield to maturity?
5,5
4.68, 4.43
5, 5.31
4.68, 5.31
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Quantitative Financial Risk Management
Authors: Constantin Zopounidis, Emilios Galariotis
1st Edition
1118738187, 978-1118738184
