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Three years ago, Dinoco issued 30-year, 4.0% semi-annual coupon bonds that currently trade for $832. If each bond features a 7-year deferred call feature with
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Three years ago, Dinoco issued 30-year, 4.0% semi-annual coupon bonds that currently trade for $832. If each bond features a 7-year deferred call feature with a 4 coupon payment penalty in addition to face value ($1000), what is the yield-to-call?
9.1%
6.3%
7.6%
5.3%
10.9%
Three years ago, Dinoco issued 30-year, 4.0% semi-annual coupon bonds that currently trade for $832. If each bond features a 7-year deferred call feature with a 4 coupon payment penalty in addition to face value ($1000), what is the yield-to-call?
| 9.1% | ||
| 6.3% | ||
| 7.6% | ||
| 5.3% | ||
| 10.9% |
Please show all work, and what to put into financial calculator!
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