Question
Today is January 1, 2012 and you are considering purchasing an outstanding bond that was issued on January 1, 2010. It has a 9% annual
Today is January 1, 2012 and you are considering purchasing an outstanding bond that was issued on January 1, 2010. It has a 9% annual coupon and originally had a 20-year maturity.The bonds can be called for 5 years from original issue date at a premium of $1085. Interest rates have declined and the bonds are currently selling for 112% of par. Calculate the YTM and the YTC.
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The Infographic Guide To Personal Finance
Authors: Michele Cagan CPA, Elisabeth Lariviere
1st Edition
1507204663, 978-1507204665
