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Regal Health Plans issued a 13% annual coupon bond with a $1,000 par value a few years ago. The bond now has ten years remaining
Regal Health Plans issued a 13% annual coupon bond with a $1,000 par value a few years ago. The bond now has ten years remaining to maturity and sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060. What is the bonds yield to maturity? Hint: Beware of superfluous information answer the question that is being asked.
a. 9.87%
b. 9.00%
c. 11.28%
d. 10.35%
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