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

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

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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Question

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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