You hold a 14 year bond that is callable in 4 years. The call premium is one semi-annual coupon payment, and the coupon rate is0.045. The current YTM is 0.105. What is the yield to call?   Group of answer choices   0.2170   0.2240   0.2027   0.2304   0.2100

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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You hold a 14 year bond that is callable in 4 years. The call premium is one semi-annual coupon payment, and the coupon rate is0.045. The current YTM is 0.105. What is the yield to call?

 

Group of answer choices

 

0.2170

 

0.2240

 

0.2027

 

0.2304

 

0.2100

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