14. An analyst observe a widget & Co. 7.125 %, 4-year, semiannual - pay bond trading at 102.347% of par (where par = $1,000). The bond is callable at 101% in two years and putable at 100% in two years. What is the bond's current yield? A. 6.962% B. 7.500% C. 7.426 % D. 7.328%

14. An analyst observe a widget & Co. 7.125 %, 4-year, semiannual - pay bond trading at 102.347% of par (where par = $1,000). The bond is callable at 101% in two years and putable at 100% in two years. What is the bond's current yield? A. 6.962% B. 7.500% C. 7.426 % D. 7.328%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

14. An analyst observe a widget & Co. 7.125 %, 4 - year, semiannual - pay bond trading at 102.347% of par (where par = $1,000). The bond is callable at
101% in two years and putable at 100% in two years. What is the bond's current yield? A. 6.962% B. 7.500% C. 7.426% D. 7.328%

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A3)

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