Question
A semi-annual corporate bond selling for R915.16, with a coupon of 10% has a YTM of 8%. The bond matures in 10 years, but can
A semi-annual corporate bond selling for R915.16, with a coupon of 10% has a YTM of 8%. The bond matures in 10 years, but can be called in 6 years at a call price of R1080 (this is a premium of 8%). What is this bond's Yield to Call (YTC )?
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Financial Markets And Institutions A Modern Perspective
Authors: Anthony Saunders, Marcia Millon Cornett, Marcia Cornett
2nd Edition
007294109X, 978-0072941098
