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Consider the following information for a bond: A semiannual coupon bond that pays a 5.0096 coupon (annual rate), has a par value of $1,000.00. matures
Consider the following information for a bond: A semiannual coupon bond that pays a 5.0096 coupon (annual rate), has a par value of $1,000.00. matures in 40 years, and is selling today at a premium of $198.72 from the par value. The bond has a call feature that allows the company to call the bond back after 15 years (leaving 25 years of maturity for the bond) at a callable par value of $1,025.00. What is the yield to call (YTC) on this bond? 19.8795 4.00% 3.4296 4.1796 5.2295
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