Question
Six years ago, Bradford Community Hospital issued 20-year municipal bonds with a 7 percent annual coupon rate. The bonds were called today for a $70
Six years ago, Bradford Community Hospital issued 20-year municipal bonds with a 7 percent annual coupon rate. The bonds were called today for a $70 call premium--that is, bondholders received $1,070 for each bond. What is the realized rate of return for those investors who bought the bonds for $1,000 when they were issued? I know I need to utilize the yield to call formula in excel but I"m confused on the cupon payment (is it $70?), the current price and the call price.
Years to first call 6
Annual coupon payment
Current price
Call price
YTC= #NUM!
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