Question
The current price of a 20-year bond with a 9% annual coupon rate is $968. The bond is callable after 10 years with a call
The current price of a 20-year bond with a 9% annual coupon rate is $968. The bond is callable after 10 years with a call price of $1,185. If interest payment is made annually, a) what is the bonds yield to maturity? b) what is the bonds yield to call?
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Foundations Of Financial Markets And Institutions
Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones
4th Edition
0136135315, 978-0136135319
