Question
Question 2 a. A bond has a $1,000 par value,10 years to maturity, a 4.5% coupon, and currently sells for $1,037. The bond pays coupons
Question 2
a.
A bond has a $1,000 par value,10 years to maturity, a 4.5% coupon, and currently sells for $1,037. The bond pays coupons semiannually. The bond is callable 3 years from today with a call price of $1,020. What is this bond's yield to maturity?
b.
A bond has a $1,000 par value,10 years to maturity, a 4.5% coupon, and currently sells for $1,037. The bond pays coupons semiannually. The bond is callable 3 years from today with a call price of $1,020. What is this bond's yield to call?
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
