IBM has just issued a callable (at par) 10 year, 6% coupon bond with annual coupon payments. The bond can be called at par in on

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IBM has just issued a callable (at par) 10 year, 6% coupon bond with annual coupon payments. The bond can be called at par in on

e year or anytime thereafter on a coupon payment date. It has a price of $97 per $100 face value, implying a yield to maturity of 6.42%. What is the bond's yield to call

Business

1 answer:

Andrew [12] · Answer 1 · 2024-06-17T04:08:31+03:00

The bond can be called at par in one year or anytime thereafter on a coupon payment date. Ithas a price of $97 per $100 face value

A bond is a type of financial security in which the issuer owes the holder a debt and is obligated to repay the principal of the bond as well as interest over a specified period of time, depending on the terms. Interest is usually paid at regular intervals.

Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a corporation. The investor agrees to give the corporation a specific sum of money for a set period of time. In exchange, the investor receives interest payments on a regular basis.

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