Question
You own a bond with a coupon rate of 7.1 percent and a yield to call of 8 percent. The bond currently sells for $1,099.
You own a bond with a coupon rate of 7.1 percent and a yield to call of 8 percent. The bond currently sells for $1,099. If the bond is callable in five years, what is the call premium of the bond?
Call Premium _________
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Financial Markets And Institutions
Authors: Jeff Madura
9th Edition
1439038848, 978-1439038840
