Question
BCFERR 3.55 04/08/2039 is a bond issued by BC Ferries (a 17.5 year bond). If the price was $777, what is the annual yield on
BCFERR 3.55 04/08/2039 is a bond issued by BC Ferries (a 17.5 year bond). If the price was $777, what is the annual yield on this bond if you just received the last coupon payment?
[Recall bonds pay semi-annual coupons on a bond with a Face Value of $1000 and the annual yield is quoted as twice the semi-annual rate (YTM)]
-2.78%
-5.56%
-1.41%
-5.52%
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
