10-year, $1,000 face value bonds with a 6% coupon rate (semi-annual payments).  The bonds are callable in five years (from original maturity) and thereafter at par value (on a coupon date). The bonds were issued two years ago and currently sell for $1,050.  What is the yield to worst? Select one: a. 4.20% b. 6.00%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Charlie Corp. (CC) has outstanding 10-year, $1,000 face value bonds with a 6% coupon rate (semi-annual payments).  The bonds are callable in five years (from original maturity) and thereafter at par value (on a coupon date). The bonds were issued two years ago and currently sell for $1,050.  What is the yield to worst?

Select one:
a.

4.20%

b.

6.00%

c.

6.09%

d.

6.29%

e.

None of the above.

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