Question
Kim purchased a 10-year par value bond with semiannual coupons at a nominal annual rate of 4% convertible semiannually at a price of 1039.25. The
Kim purchased a 10-year par value bond with semiannual coupons at a nominal annual rate of 4% convertible semiannually at a price of 1039.25. The bond can be called at par value 1500 on any coupon date starting at the end of year 5. What is the minimum yield that Kim could receive, expressed as a nominal annual rate of interest convertible semiannually?
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Cases In Healthcare Finance
Authors: George H. Pink, Paula H. Song
7th Edition
1640553177, 978-1640553170
