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Five years ago, Messy Tree Service Corp issued a 20-year bond with a $1,000 maturity value and a 10 percent coupon rate. Interest is paid
Five years ago, Messy Tree Service Corp issued a 20-year bond with a $1,000 maturity value and a 10 percent coupon rate. Interest is paid semiannually. The bond is currently selling for $850. If the bond can be called in four years for a redemption price of $1,100, what is the bond's yield to call (YTC)? 1) 10.45% 2) 12.45% 3) 14.09% 4) 15.09% 5) 17.18%
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