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Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 12% annual coupon payment, and their
Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 12% annual coupon payment, and their current price is $1,175. The bonds may be called in 5 years at 109% of face value (Call price = $1,090).
- What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.
- What is the yield to call if they are called in 5 years? Do not round intermediate calculations. Round your answer to two decimal places.
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