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Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bonds nominal yield to call?
a. | 6.77% | |
b. | 4.42% | |
c. | 5.54% | |
d. | 5.59% | |
e. | 5.09% |
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