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Mr. Jenkins is considering another bond, Bond D. It has an 8% semiannual coupon and a $1,000 face value (i.e., it pays a $40 coupon
Mr. Jenkins is considering another bond, Bond D. It has an 8% semiannual coupon and a $1,000 face value (i.e., it pays a $40 coupon every 6 months). Bond D is scheduled to mature in 9 years and has a price of $1,150. It is also callable in 5 years at a call price of $1,040. What is the bonds nominal yield to maturity? - Calculate with Excel! What is the bonds nominal yield to call? - Calculate with Excel! If Mr. Jenkins were to purchase this bond, would he be more likely to receive the yield to maturity or yield to call? Explain your answer. |
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