2. Nike Inc. currently has an AA-rated (Standard & Poor's) corporate bond outstanding, with a coupon rate of 3.875%, paid semi-annually, due to mature at 11/01/2045 (assume 21 full years), and callable in ten years (at a call price of $1,038). If the bond has a par value of $1,000 and is currently priced at $839.60, calculate: a. The bond's current yield b. The bond's yield to maturity C. The bond's yield to call
2. Nike Inc. currently has an AA-rated (Standard & Poor's) corporate bond outstanding, with a coupon rate of 3.875%, paid semi-annually, due to mature at 11/01/2045 (assume 21 full years), and callable in ten years (at a call price of $1,038). If the bond has a par value of $1,000 and is currently priced at $839.60, calculate: a. The bond's current yield b. The bond's yield to maturity C. The bond's yield to call
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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Transcribed Image Text:2. Nike Inc. currently has an AA- rated (Standard & Poor's) corporate bond outstanding, with a coupon
rate of 3.875%, paid semi-annually, due to mature at 11/01/2045 (assume 21 full years), and callable
in ten years (at a call price of $1,038). If the bond has a par value of $1,000 and is currently priced at
$839.60, calculate:
a. The bond's current yield
b. The bond's yield to maturity
C. The bond's yield to call
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