Question
suppose a 10 year 10% semiannual coupon bond with a par value of $1,000 is currently selling for $ 1,135.90 producing a nominal yield to
suppose a 10 year 10% semiannual coupon bond with a par value of $1,000 is currently selling for $ 1,135.90 producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of $1,050.
1. What is the bond's nominal yield to call (YTC)?
2. If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?
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The Public Private Partnership Handbook
Authors: Malcolm Morley
1st Edition
0749474262, 978-0749474263
