Question
You own a bond with a 6.3 percent coupon rate and a yield to call of 7.2 percent. The bond currently sells for $1,105. If
You own a bond with a 6.3 percent coupon rate and a yield to call of 7.2 percent. The bond currently sells for $1,105. If the bond is callable in five years, what is the call premium of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
| Call premium | $ |
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The Budget Building Book For Nonprofits
Authors: Murray Dropkin, Jim Halpin, Bill La Touche
2nd Edition
0787996033, 978-0787996031
