Question
Joe owns a bond which is callable in 3 years. The bond has a 6 percent coupon, pays interest semiannually, has a par value of
Joe owns a bond which is callable in 3 years. The bond has a 6 percent coupon, pays interest semiannually, has a par value of $1,000, and has a yield to call of 6.3 percent. What is the call premium if the bond currently sells for $1,050.03?
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To solve this problem we need to find the call premium which is the difference between the current m...
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
