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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 $1,085. What is the bond's nominal yield to call? Hint: First find the Price (PV) of the Bond, then find the YTM (1/Rate) for the Callable Bond provision. Remember this is a semi annual bond, so adjust the inputs (Nx2, PMT/2, 1/Rate/2), and multiply the final YTM result (I/Rate) by 2. 3.05% 5.55% 6.10% 5.91% 6.83%
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