Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,085. What is the bond’s nominal yield to call? 5.55% 5.91% 6.83% 4.88% 6.10%

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Q: What is the bond's nominal yield to call? A. 5.27% B. 5.01% C. 6.10% D. 5.81% E. 5.54%.

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Q: What is the bond's nominal yield to call?

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.