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Blossom Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.405 percent and a yield to maturity of
Blossom Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.405 percent and a yield to maturity of 6.3 percent. Assume face value is $1000.
If the bonds can be called in five years at a premium of 10.0 percent over par value, what is the investor's realized yield? Round answer to 3 decimal places.
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