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GM has just issued a callable, $1000 par value, five year, 5% coupon bond with semiannual coupon payments. The bond can be called at par
GM has just issued a callable, $1000 par value, five year, 5% coupon bond with semiannual coupon payments. The bond can be called at par in two years, or anytime after on a coupon payment date. If the bond is currently trading for $950, then its yield to call is closest to:
A. 3.9%
B. 6.2%
C. 6.8%
D. 7.7%
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