Question
Last year a company issued a 12-year, 9% coupon bond with semiannual coupon payments at its par value of $1,000. Currently, the bond can be
Last year a company issued a 12-year, 9% coupon bond with semiannual coupon payments at its par value of $1,000. Currently, the bond can be called in 5 years at a price of $1,075 and it sells for $1,125. What is the yield to maturity on those bonds?
| 7.08% | ||
| 9.12% | ||
| 6.48% | ||
| 8.15% | ||
| 7.33% |
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Multinational Business Finance
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
15th Global Edition
129227008X, 9781292270081
