Question
LHIN Inc.s bonds is a 12% semi-annual coupon bond and have 15-year left until its maturity. It is currently selling for $1,250. The bond has
LHIN Inc.s bonds is a 12% semi-annual coupon bond and have 15-year left until its maturity. It is currently selling for $1,250. The bond has a callable feature which allows LHIN Inc. to call the bond in 5 years at $1,050. What is the difference between this bonds YTM and its YTC? (i.e., calculate the YTM and YTC separately and determine the difference between these two rates)
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Canadian Public Finance
Authors: Genevieve Tellier
1st Edition
1487594410, 978-1487594411
