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You are analyzing a bond and want to ensure that you calculate the Yield to Maturity and Yield to Call correctly. The bond has 16
- You are analyzing a bond and want to ensure that you calculate the Yield to Maturity and Yield to Call correctly. The bond has 16 years remaining to maturity. It is a semi-annual, 7% coupon, $1,000 par value bond. The current price of the bond is 94.5 as a percent of par. The bond is callable in 7 years at a call premium of 101 ($1,010)
- Calculate the yield to maturity?
- Calculate the yield to call?
- What do you think the investors will actually earn? Why?
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The Handbook Of Financial Instruments
Authors: Frank J. Fabozzi
1st Edition
0471220922, 978-0471220923
