Question
Company X bonds have 14 years remaining to maturity, but are callable in 4 years at a call price of $1,050. The bonds have $1,000
Company X bonds have 14 years remaining to maturity, but are callable in 4 years at a call price of $1,050. The bonds have $1,000 face value, currently trade at $1,180 and have a coupon rate of 5%. Based on this information, answer the following questions:
- What is the bonds Yield to Maturity?
- What is the bonds Yield to Call?
- What is the bonds Current Yield?
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
