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 bond’s Yield to Maturity?
- What is the bond’s Yield to Call?
- What is the bond’s Current Yield?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
