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zzz [600]
3 years ago
9

A corporate bond with a 6% coupon (paid semiannually) has a yield to maturity of 7.5%. The bond matures in 20 years but is calla

ble at $1050 in ten years. The maturity value is par. Calculate the bond’s yield to call. % terms w/o $ sign. (HINT: Find the current price and then solve for YTC.)
Business
1 answer:
Zina [86]3 years ago
8 0

Answer:

Yield to Call = 8.66%

Explanation:

The computation of the yield to call is shown below:

First determine Current Price of Bond,

PV = [FV = 1,000, PMT = 30, N = 40, I = 0.075 ÷2]

PV = $845.87

Callable Price = $1,050

Now

Calculating Yield to Call,

I = [PV = -845.87, FV = 1,050, N = 20, PMT = 30]

I = 8.66%

Yield to Call = 8.66%

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Answer:

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Explanation:

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The process that falls between buying for a new need and making a routine repurchase is called
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Modified Rebuy

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Answer:

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Explanation:

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