7. A company issues a 20-year, callable bond at par with a 6% annual coupon. The...
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7. A company issues a 20-year, callable bond at par with a 6% annual coupon. The bond can be called at par in three years or any time after that on a coupon payment date. The call price is $110 per $100 of face value. What is the yield to call? Collatheat 3 years 3=n=20 CR=6% PV=-110x Capon = 100X6% fv-100x $6 PMT=6 CPT Y with n=3- VTC=3.49% -2 7. A company issues a 20-year, callable bond at par with a 6% annual coupon. The bond can be called at par in three years or any time after that on a coupon payment date. The call price is $110 per $100 of face value. What is the yield to call? Collatheat 3 years 3=n=20 CR=6% PV=-110x Capon = 100X6% fv-100x $6 PMT=6 CPT Y with n=3- VTC=3.49% -2
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Related Book For
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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