Question

Masters Corp. has two bonds with 20-years remaining until maturity. Both bonds are unsecured and are callable at $1,050.Bond A was issued 20 years ago with a coupon rate of 6%. Bond B was issued 10 years ago with a coupon rate of 8%. If bonds with similar risk today are yielding about 8%, which bond has the higher yield to maturity?



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  • CreatedSeptember 19, 2013
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