Question
Please round to 3 decimal places A 15-year maturity, 9.5% coupon bond paying coupons semiannually is callable in five years at a call price of
Please round to 3 decimal places
A 15-year maturity, 9.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,020. The bond currently sells at a yield to maturity of 6.00% (3.00% per half-year). a. What is the yield to call annually? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Yield to call _------------------------------% b. What is the yield to call annually if the call price is only $970? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Yield to call ------------------------ %
c. What is the yield to call annually if the call price is $1,020, but the bond can be called in two years instead of five years? (Negative amounts should be shown with a minus sign. Do not round intermediate calculations. Round your answer to 3 decimal places.)
Yield to call ------------------------ %
ALL THREE QUESTIONS MUST BE ROUNDED TO 3 DECIMAL PLACES
THANK YOU
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