Question
. A firms bonds have a maturity of 8 years with a $1,000 par value,, have an 11% coupon rate, are callable in 4 years
. A firms bonds have a maturity of 8 years with a $1,000 par value,, have an 11% coupon rate, are callable in 4 years at $1,154 and currently sell at a price of $1,283.09. Suppose the coupon payments are made quarterly.
a) What is the yield to maturity?
N= I/YR= PMT= FV= PV=
Yield to maturity=
b) What is the yield to call?
N= I/YR= PMT= FV= PV=
Yield to call=
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
