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?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the yield to call for the bond we need to find the present value of all future cash flo...
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Step: 2
Step: 3
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
