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Question 8 A 5.70% coupon bond with 23 years left to maturity can be called in 18 years; The call premium is 1 year of
Question 8
A 5.70% coupon bond with 23 years left to maturity can be called in 18 years; The call premium is 1 year of coupon payments; The bond is currently offered for sale at $975.32 (Assume interest payments are semiannual) - What is the bond's yield to maturity?
| 5.92% | ||
| 5.84% | ||
| 2.95% | ||
| 5.90% | ||
| 6.00% | ||
| 11.71% | ||
| 11.80% |
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
