Question
Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 25-year maturity,
Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 25-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?
Group of answer choices
8.56%
9.17%
9.46%
9.09%
10.43%
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Mathematical Finance Core Theory Problems And Statistical Algorithms
Authors: Nikolai Dokuchaev
1st Edition
0415414482, 978-0415414487
