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Given the following callable bond information: Bond Characteristic Value Price 928.94 Coupon Rate (semi-annually compounded, per year) 6% Coupons are Paid semi-annually Face Value $1,000
Given the following callable bond information:
| Bond Characteristic | Value |
| Price | 928.94 |
| Coupon Rate (semi-annually compounded, per year) | 6% |
| Coupons are Paid | semi-annually |
| Face Value | $1,000 |
| Matures at | par |
| Maturity (in years) | 10 |
| Callable After (years) | 4 |
| Call Price | $1,010 |
Use the method of averages to calculate the Yield-to-Worst, and express it as a semi-annually compounded rate.
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Applied International Finance I Managing Foreign Exchange Risk
Authors: Thomas O'Brien
2nd Edition
1947441280,1947441299
