Question
Assume that an investor is looking at a Ace Incs bond Ace's bond is a 10-year, 12% (semi-annual) bond that is priced to yield 9.25%
Assume that an investor is looking at a Ace Incs bond Ace's bond is a 10-year, 12% (semi-annual) bond that is priced to yield 9.25% (YTM = 9.25%). The Bond currently has 6 years before it can be called back at a price of $1,080. Please round the final answer to 2 decimal places.
What is the annual YTC for Aces Bond?
What should the investor expect to earn, YTM or YTC?
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Guardians Of Finance
Authors: James R. Barth, Gerard Caprio, Ross Levine
1st Edition
0262526840, 978-0262526845
