Question
Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. The annual coupon of $100 is paid semi-annually (i.e., they pay
Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. The annual coupon of $100 is paid semi-annually (i.e., they pay a $50 semi-annual coupon). The bonds have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?
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Inside Private Equity
Authors: James M. Kocis, James C. Bachman IV, Austin M. Long III, Craig J. Nickels
1st Edition
0470421894, 978-0470421895
