Question
You just purchased bond ABB at 95% of its par value. The bond is callable in 7 years with a call premium of 5% of
You just purchased bond ABB at 95% of its par value. The bond is callable in 7 years with a call premium of 5% of par value. The annual coupon rate is 8%. This is an annual coupon bond.
What is the Yield to Call for you at this moment?
You must round up answer to 2 decimals, and write your answer without the percentage sign. (For example, if your answer is 5.80%, you must write 5.80)
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Mathematics Of Finance
Authors: Robert Brown, Steve Kopp, Petr Zima
8th Edition
0070876460, 978-0070876460
