Assume a 15year, 6 percent bond is callable in 5 years at a price of $1,050 The bond currently sells for $1,075 The semiannual yield to call is calculated as I YR, the semiannual yield to call, is 2 58 percent The bond equivalent yield (yield to call) is 5 16 percent The YTM on this bond is 5 51 pe...

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Assume a 15year, 6 percent bond is callable in 5 years at a price of $1,050. The

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Assume a 15‐year, 6 percent bond is callable in 5 years at a price of $1,050. The bond currently sells for $1,075. The semiannual yield to call is calculated as

N I/YR PV 10 ? -1,075 PMT FV 30 1,050

I/YR, the semiannual yield to call, is 2.58 percent. The bond equivalent yield (yield to call) is 5.16 percent. The YTM on this bond is 5.51 percent.

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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Question Posted: Dec 28, 2023 12:22 PM

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Assume a 15year, 6 percent bond is callable in 5 years at a price of $1,050. The

Question:

N I/YR PV 10 ? -1,075 PMT FV 30 1,050

Step by Step Answer:

Investments Analysis And Management

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