Question
The market yield of a twelve-year 7% annual-pay bond is 6%. The bond is callable in three years and its yield to call is 5.7%.
The market yield of a twelve-year 7% annual-pay bond is 6%.
The bond is callable in three years and its yield to call is 5.7%.
What is the call price of the bond?
a) 1057.74
b) 1083.84
c) 1089.59
d) 1026.73
(The answer appears to be 1057.74, but how do we get there? Can you show the steps? If possible, please use excel)
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The Emerald Handbook On Cryptoassets Investment Opportunities And Challenges
Authors: H. Kent Baker, Hugo Benedetti, Ehsan Nikbakht, Sean Stein Smith
1st Edition
1804553212, 978-1804553213
