Question
Masters Corp. issues two bonds with 15-year maturities. Both bonds are callable at $1,090. The first bond is issued at a deep discount with a
| Masters Corp. issues two bonds with 15-year maturities. Both bonds are callable at $1,090. The first bond is issued at a deep discount with a coupon rate of 4% and a price of $540 to yield 10.5%. The second bond is issued at par value with a coupon rate of 7.35%. |
| a. | What is the yield to maturity of the par bond? |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
9th Edition
0134519264, 9780134519265
