A callable bond pays annual interest of $40, has a par value of $1000, matures in 4

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A callable bond pays annual interest of $40, has a par value of $1000, matures in 4 years but is callable in 3 years at a price of $1100, and has a value today of $1020. What is the yield to call on this bond?

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Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

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Posted Date: Apr 26, 2024 01:01 AM

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A callable bond pays annual interest of $40, has a par value of $1000, matures in 4

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To calculate the yield to call YTC for a callable bond we must first understand that the bondholder ... View the full answer

Investments An Introduction

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