Target’s bonds currently sell for $924. They pay a $148 annual coupon, have an 18-year maturity, and a face value of $1,000, but they can be called in 10 years at $1,512. Their yield to call (YTC) is closest to   A. 10.85%. B. 13.74%. C. 16.71%. D. 18.64%. Clear my choice

Essentials Of Investments
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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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Target’s bonds currently sell for $924. They pay a $148 annual coupon, have an 18-year maturity, and a face value of $1,000, but they can be called in 10 years at $1,512. Their yield to call (YTC) is closest to


 

A.

10.85%.

B.

13.74%.

C.

16.71%.

D.

18.64%.

Clear my choice
 
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