"Company B has just issued a callable (at par) 10 year, 12% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $89 per $100 face value. What is the bond's yield to call? Express your answers in strictly numerical terms. For example, if the answer is 59%, write 0.05,"
"Company B has just issued a callable (at par) 10 year, 12% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $89 per $100 face value. What is the bond's yield to call? Express your answers in strictly numerical terms. For example, if the answer is 59%, write 0.05,"
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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"Company B has just issued a callable (at par) 10 year, 12% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $89 per $100 face value. What is the bond's yield to call? Express your answers in strictly numerical terms. For example, if the answer is 59%, write 0.05,"
Transcribed Image Text:"Company B has just issued a callable (at par) 10 year, 12% coupon bond with annual coupon payments. The bond can be called at par in
one year or anytime thereafter on a coupon payment date. It has a price of $89 per $100 face value. What is the bond's yield to call?
Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05."
I
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