Question
Four years ago Messy House Painting issued a 20-year bond with a $1,000 maturity value and a 4 percent coupon rate of interest. Interest is
Four years ago Messy House Painting issued a 20-year bond with a $1,000 maturity value and a 4 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $714. *SET TO 4 DECIMAL PLACES*
(a) What is the bonds yield to maturity?
(b) If the bond can be called in three years for a redemption price of $1,016, what is the bonds yield to call?
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Problems In Portfolio Theory And The Fundamentals Of Financial Decision Making
Authors: Leonard C Maclean, William T Ziemba
1st Edition
9814749931, 978-9814749930
