GoGreen Inc. bonds currently sell for $1,205 and have a par value of $1,000. They have a 10% annual coupon interest rate paid semiannually and have a 20-year maturity, but they can be called in 6 years at $1,050. What is their effective yield to call (YTC)?

GoGreen Inc. bonds currently sell for $1,205 and have a par value of $1,000. They have a 10% annual coupon interest rate paid semiannually and have a 20-year maturity, but they can be called in 6 years at $1,050. What is their effective yield to call (YTC)?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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GoGreen Inc. bonds currently sell for $1,205 and have a par value of $1,000. They have a 10% annual coupon interest rate paid
semiannually and have a 20-year maturity, but they can be called in 6 years at $1,050. What is their effective yield to call (YTC)?

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