Question
Meacham Enterprises' bonds currently sell for $1,075 and have a par value of $1,000. They pay a $80 annual coupon and have a 15-year maturity,
Meacham Enterprises' bonds currently sell for $1,075 and have a par value of $1,000. They pay a $80 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)?
a. 9.88%
b. 8.72%
c. 8.08%
d. 7.84%
e. 7.11%
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Comparative Public Budgeting
Authors: George M Guess
2nd Edition
1316648109, 978-1316648100
