Thatcher Corporation’s bonds will mature in 10 years. The bonds have a facevalue of $1,000 and an 8% coupon rate, paid semiannually. The price of thebonds is $1,100. The bonds are callable in 5 years at a call price of $1,050.What is their yield to maturity? What is their yield to call?
Thatcher Corporation’s bonds will mature in 10 years. The bonds have a facevalue of $1,000 and an 8% coupon rate, paid semiannually. The price of thebonds is $1,100. The bonds are callable in 5 years at a call price of $1,050.What is their yield to maturity? What is their yield to call?
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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Thatcher Corporation’s bonds will mature in 10 years. The bonds have a face
value of $1,000 and an 8% coupon rate, paid semiannually. The price of the
bonds is $1,100. The bonds are callable in 5 years at a call price of $1,050.
What is their yield to maturity? What is their yield to call?
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