Question
The Harrison Companys bonds currently sell for $1,275. They pay a $120 annual coupon, have a 20-year maturity, and a par value of $1,000, but
The Harrison Companys bonds currently sell for $1,275. They pay a $120 annual coupon, have a 20-year maturity, and a par value of $1,000, but they can be called in 5 years at $1,120.
a. What is their YTM?
b.What is their YTC?
c.If the yield curve remained flat, which rate would investors expect to earn? YTC or YTM
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Fundamentals Of Institutional Asset Management
Authors: Frank J Fabozzi, Francesco A Fabozzi
1st Edition
9811220034, 9789811220036
