Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon rate with semiannual coupon payments, and a $1,000 par value. The bond offers a 6.50% yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond’s yield to call? Group of answer choices 6.20% 7.20% 6.53% 6.85% 7.55%
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon rate with semiannual coupon payments, and a $1,000 par value. The bond offers a 6.50% yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond’s yield to call? Group of answer choices 6.20% 7.20% 6.53% 6.85% 7.55%
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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Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon rate with semiannual coupon payments, and a $1,000 par value. The bond offers a 6.50% yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond’s yield to call?
Group of answer choices
6.20%
7.20%
6.53%
6.85%
7.55%
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