Medtronic plc (MDT) recently issued a 14-year, 8.87% monthly coupon bond selling for $1,768.54 can be called in 7 years for $1,392.85. In this case, MDT will raise money by selling new issuing bonds, and investors earn the bond’s yield-to-call (YTC), which is lower than its yield-to-maturity (YTM).
Medtronic plc (MDT) recently issued a 14-year, 8.87% monthly coupon bond selling for $1,768.54 can be called in 7 years for $1,392.85. In this case, MDT will raise money by selling new issuing bonds, and investors earn the bond’s yield-to-call (YTC), which is lower than its yield-to-maturity (YTM).
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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Medtronic plc (MDT) recently issued a 14-year, 8.87% monthly coupon bond selling for $1,768.54 can be called in 7 years for $1,392.85. In this case, MDT will raise money by selling new issuing bonds, and investors earn the bond’s yield-to-call (YTC), which is lower than its yield-to-maturity (YTM).
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