Question
Consider a corporate bond with a par value of $100, 11 years until maturity, an 8% coupon, and is callable in 7 years at par.
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Consider a corporate bond with a par value of $100, 11 years until maturity, an 8% coupon, and is callable in 7 years at par. The bond currently trades for $115.81. Compute the more appropriate yield: yield-to-maturity or yield-to-call. The bond pays coupons semi-annually. State your answer at an annual rate.
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Routledge Handbook Of Financial Technology And Law
Authors: Iris Chiu, Gudula Deipenbrock
1st Edition
0367344149, 978-0367344146
