5. A Bond is currently sold at $980, it has 20 years to maturity and 9%...

 

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5. A Bond is currently sold at $980, it has 20 years to maturity and 9% coupon rate. The bond will be called in 5 years, the bond will be called at a premium of $1,050, what is yield to call? 5. A Bond is currently sold at $980, it has 20 years to maturity and 9% coupon rate. The bond will be called in 5 years, the bond will be called at a premium of $1,050, what is yield to call?

Answer rating: 100% (QA)

To calculate the yield to call YTC of a bond we need to determine the interest rate that makes the p... View the full answer