Question
Suppose Berkshire Hathaway Energy Co issues a 30-year maturity 4.600% coupon bond paying coupons semi-annually with par value $1,000. The bond currently sells at a
Suppose Berkshire Hathaway Energy Co issues a 30-year maturity 4.600% coupon bond paying coupons semi-annually with par value $1,000. The bond currently sells at a yield to maturity of 5.005%. (a) [5pts] What is the price of the bond currently selling? (b) [5pts] Suppose this bond is callable in 20 years with call price $1,000. Calculate the yield to call.
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
