Question
A seven-year bond with semiannual coupons and an annual coupon rate of 8.6% has a face value of $50,000. The bond is redeemable for
A seven-year bond with semiannual coupons and an annual coupon rate of 8.6% has a face value of $50,000. The bond is redeemable for $45,000 at end of term and is callable at this same amount in years 4 through 7. If the price is $56,973, what is the maximal yield to the investor? What is the minimal yield?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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