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Amazon.com Inc. issued a callable bond with a face value of $1,000, a coupon rate of 6%, and semi-annual coupon payments. The bond matures in
Amazon.com Inc. issued a callable bond with a face value of $1,000, a coupon rate of 6%, and semi-annual coupon payments. The bond matures in 15 years but is callable in 5 years at a call price of $1,050. The current market interest rate is 5%. Calculate: a) The price of the bond. b) The yield to call (YTC). c) The earliest call date for the bond. d) Determine if the bond is likely to be called at the earliest opportunity.
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