Question
The Providence Redevelopment Agency currently has an A rates municipal bond outstanding, with a coupon rate of 5.00%, paid semi-annually, due to mature in eight
The Providence Redevelopment Agency currently has an A rates municipal bond outstanding, with a coupon rate of 5.00%, paid semi-annually, due to mature in eight years, and callable in 5 years (at a call price of $1,025). If the bond has a par value of $1,000 and is currently priced at $1,083, calculate:
- The bond's current yield
- the bond's yield to maturity
- The bond's yield to call
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
