Question
Red Inc.'s bonds currently sell for $1,264 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity,
Red Inc.'s bonds currently sell for $1,264 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 4 years at $1,170. What is their yield to call (YTC)?
a. 6.62%
b. 6.98%
c. 7.35%
d. 7.74%
e. 8.12%
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Personal Finance
Authors: Vickie L Bajtelsmit
2nd Edition
111959247X, 9781119592471
