A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14% coupon,

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A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14% coupon, pays interest semiannually and can be called in 5 years at a price of $1,100. What is the bond's Yield to maturity?

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Essentials Of Corporate Finance

ISBN: 9780073405131

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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