A firm’s bonds have a maturity of 16 years with a $1,000 face value, a 12 percent semiannual coupon, are callable in 6 years at $1,070, and currently sell at a price of $1,131.  What is their yield to call (YTC)?   a. 9.12%   b. 10.47%   c. 10.31%   d. 9.93%   e. 12.00%

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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  1. A firm’s bonds have a maturity of 16 years with a $1,000 face value, a 12 percent semiannual coupon, are callable in 6 years at $1,070, and currently sell at a price of $1,131.  What is their yield to call (YTC)?
      a.
    9.12%
      b.
    10.47%
      c.
    10.31%
      d.
    9.93%
      e.
    12.00%
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