Salmon ASA has just issued a callable seven-year, 8% coupon bond with coupon payable annually. The...

 

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Salmon ASA has just issued a callable seven-year, 8% coupon bond with coupon payable annually. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $112. What is the bond's: a) yield to maturity and b) yield to call? Salmon ASA has just issued a callable seven-year, 8% coupon bond with coupon payable annually. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $112. What is the bond's: a) yield to maturity and b) yield to call?

Answer rating: 100% (QA)

To calculate the bonds yield to maturity YTM and yield to call YTC we need to use the bonds price co... View the full answer