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Suppose you have a 15 percent, 25-year bond traded at $975. If it is callable in 5 years at $1050, what is the bond's yield
Suppose you have a 15 percent, 25-year bond traded at $975. If it is callable in 5 years at $1050, what is the bond's yield to call? Interest is paid annually.
a. | 8.52 percent | |
b. | 16.5 percent | |
c. | 7.65 percent | |
d. | 9.64 percent | |
e. | 15 percent |
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