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Yield to maturity A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable in
Yield to maturity
A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at $1,241, and currently sell at a price of $1,411.89.
- A.Whatistheirnominalyieldtomaturity?Donotroundintermediatecalculations.Roundyouranswertotwodecimalplaces.
- B. What is their nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.
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