Question
You bought a $1,000 face value J&J callable bond in September 2022 that is callable at 101 in 2027 and 2028 and at par after
You bought a $1,000 face value J&J callable bond in September 2022 that is callable at 101 in 2027 and 2028 and at par after 2028. It has a coupon rate of 4.9 % per year.
a. Excluding interest, how much would you receive if J&J called the bond in 2028?
b. When is J&J likely to call the bond?
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Financial Reporting And Statement Analysis A Strategic Approach
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
5th Edition
032418638X, 978-0324186383
