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Kaufman Enterprises has bonds outstanding with a $1,000 face value and 11 years left until maturity. They have an 10% annual coupon payment and their
Kaufman Enterprises has bonds outstanding with a $1,000 face value and 11 years left until maturity. They have an 10% annual coupon payment and their current price is $1,190. The bonds may be called in 5 years at 109% of face value (Call price = $1,090). a. What is the yield to maturity? Round your answer to two decimal places. % b. What is the yield to call, if they are called in 5 years? Round your answer to two decimal places. %
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