Question
Let's say you buy a bond with a face value of $1,000 and a coupon rate of 5%, so the annual interest payments are $50.
Let's say you buy a bond with a face value of $1,000 and a coupon rate of 5%, so the annual interest payments are $50. The bond matures in 10 years, but the issuer can call the bond for $1,050 in two years if they choose. You buy the bond for $960, a discount to face value. What is the yield to call (i.e., YTC)?
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Analysis Synthesis And Design Of Chemical Processes
Authors: Richard Turton, Joseph Shaeiwitz, Debangsu Bhattacharyya, Wallace Whiting
5th Edition
0134177401, 978-0134177403
