An analyst, Daniel, observes Apple Inc. (AAPL), 5.18%, 19-year, quarterly pay bond trading at 104.514% of par, where par value is $1,000. The bond is callable at 98 in six years. The bond’s yield-to-call (YTC) is closest to A. 3.70%. B. 4.03%. C. 4.58%. D. 5.01%.
An analyst, Daniel, observes Apple Inc. (AAPL), 5.18%, 19-year, quarterly pay bond trading at 104.514% of par, where par value is $1,000. The bond is callable at 98 in six years. The bond’s yield-to-call (YTC) is closest to A. 3.70%. B. 4.03%. C. 4.58%. D. 5.01%.
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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An analyst, Daniel, observes Apple Inc. (AAPL), 5.18%, 19-year, quarterly pay bond trading at 104.514% of par, where par value is $1,000. The bond is callable at 98 in six years. The bond’s yield-to-call (YTC) is closest to
A. 3.70%.
B. 4.03%.
C. 4.58%.
D. 5.01%.
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