Question
Lazio Company 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
Lazio Company 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 7.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,150. What is the bonds nominal yield to call?
| 8.19% | ||
| 8.41% | ||
| 8.11% | ||
| 8.34% | ||
| 8.74% |
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
