Question
Galt Industries has just issued a callable, $1000 par value, five-year, 6% coupon bond with semi-annual coupon payments. The bond can be called at par
Galt Industries has just issued a callable, $1000 par value, five-year, 6% coupon bond with semi-annual coupon payments. The bond can be called at par in three years or anytime thereafter on a coupon payment date. The bond is currently trading for $978.94. What is the bond's yield to maturity? What is its yield to call?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Global Edition
1292437154, 978-1292437156
