Question
You purchase a bond for $1,280 with a coupon rate of 8% that matures in 10 years. After 3 years the bond is callable with
You purchase a bond for $1,280 with a coupon rate of 8% that matures in 10 years. After 3 years the bond is callable with a call penalty of one years interest. If the issuer exercises their right to call after 5 years, what is the YTC (in percent) for this bond?
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
