A bond that matures in 10 years is callable in three years at a call price of $1,025 The bond has a semi annual coupon rate of 8 percent If the YTM is 7 3 percent and the YTC is 6 92 percent, what is the bonds current price Is this bond likely to be called ...

We can find the price of the bond using either the YTM or the YTC but take care to use the corre ...

A bond that matures in 10 years is callable in three years at a call price of

Question:

A bond that matures in 10 years is callable in three years at a call price of $1,025. The bond has a semi-annual rate of 8 percent. If the YTM is 7.3 percent and the YTC is 6.92 percent, what is the bond’s current price? Is this bond likely to be called?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...