Fooling Company has a 10 percent callable bond outstanding on the market with 25 years to maturity,
Question:
Fooling Company has a 10 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $100. What is the yield to call (YTC) for this bond if the current price is 108 percent of par value?
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The yield to call can be computed as P 1080 50PVIFA R20 1100PVIF R20 R 4688 YTC 938 Since t...View the full answer
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Related Book For 
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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