Assume today is November 1, 2023 and that all bonds pay interest semi-annually with a face value of $1,000. YTM = Current yield + Capital Gains yield; CY = Annual Interest/Current Price Apple is AA rated; AAA Treasuries yield 3-year is 5.25%, 10-year 5.50% 2 Years ago, Apple issued 3.0% coupon paying bonds with a face value of $1000 set to mature on November 1, 2033. The bonds are callable in 1 year at 1050. Concerns over higher inflation have pushed interest rates higher globally. Calculate the yield to cal

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
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Assume today is November 1, 2023 and that all bonds pay interest semi-annually with a face value of $1,000. YTM = Current yield + Capital Gains yield; CY = Annual Interest/Current Price Apple is AA rated; AAA Treasuries yield 3-year is 5.25%, 10-year 5.50% 2 Years ago, Apple issued 3.0% coupon paying bonds with a face value of $1000 set to mature on November 1, 2033. The bonds are callable in 1 year at 1050. Concerns over higher inflation have pushed interest rates higher globally. Calculate the yield to call.

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