Suppose a bond is callable and has a coupon rate of 11%, 10 years to maturity and call protection for the next 2 years. The call premium is $25. What is the YTC for the bond if the current price is $1,100? Enter your answer as a percentage, rounded to 2 decimal places. For example, if the answer is 10.24%, enter 10.24. 3.78

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
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Question 4
Suppose a bond is callable and has a coupon rate of 11%, 10 years to maturity and call protection for the next 2
years. The call premium is $25. What is the YTC for the bond if the current price is $1,100?
Enter your answer as a percentage, rounded to 2 decimal places. For example, if the answer is 10.24%, enter
10.24.
3.78
Transcribed Image Text:t Question 4 Suppose a bond is callable and has a coupon rate of 11%, 10 years to maturity and call protection for the next 2 years. The call premium is $25. What is the YTC for the bond if the current price is $1,100? Enter your answer as a percentage, rounded to 2 decimal places. For example, if the answer is 10.24%, enter 10.24. 3.78
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