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Oracle Corp has senior bonds that currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value,
Oracle Corp has senior bonds that currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in five years. Assume that no costs other than the call premium would be incurred to call and refund the bonds, with rates expected to remain at current levels into the future.
Calculate and enter the yield to call of the bond.
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