Question
Show work (in excel, if possible) An analyst observes a LUI & Co 6.25%, 5 year semi-annual pay bond trading at 104.764% of par (where
Show work (in excel, if possible)
An analyst observes a LUI & Co 6.25%, 5 year semi-annual pay bond trading at 104.764% of par (where par = $1,000). The bond is callable at 102 in 3 years and putable at 99 in 3 years. Find current yield, YTM, YTC, YTM and answer the following:
- what are the bond's current yield and yield to maturity?
- What's the bond's yield to call and put?
- Do you expect that the bond would be called and/or put? Why or Why not?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th Edition
0321374215, 9780321374219
