Question
Suppose you have a 12 percent, 20-year bond traded at $850. If it is callable in 5 years at $1,100, what is the approximate annual
Suppose you have a 12 percent, 20-year bond traded at $850. If it is callable in 5 years at $1,100, what is the approximate annual bond's yield to call? Interest is paid semiannually. Use the formula provided in class to calculate your answer.
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
