Question: A $ 1 , 0 0 0 par value bond sells for $ 1 , 2 1 6 . It matures in 2 0 years,

A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 32% coupon, pays interest semiannually, and can be called in 5 years at a price of $1156. What is the bond's Yield to call?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1 pts A $ 1 , 0 0 0 par value bond sells for $ 1 , 4 0 0 . It matures in 1 0 years, has a 1 2 percent coupon, pays interest semiannually, and can be called in years at a price of $ 1 , 5 0 0 ....

Q:

1 . ) A bond pays $ 8 0 per year in interest ( 8 % coupon ) . The bond has 5 years before it matures, at which time it will pay $ 1 0 0 0 . Assuming a discount rate of 1 0 % and annual payments, what...

Q:

1. Match the yield to maturity to the terms of the bond. All of these bonds pay interest twice a year. "A $1,000 par value bond that matures in 8 years is currently selling for $969.99. The bond pays...

Q:

PLEASE SHOW WORKING. A. An asset yields the following year-end cash flows: $8,000 per year for years 1-3; $10,000 per year for years 4-7; $12,000 per year for years 8-15; $15,000 per year for years...

Q:

11-3: After-Tax Cost of Debt: rd(1-1) and rstd 1-T) Problem 11-9 Bond Yield and After-Tax Cost of Debt em 11-10: Partially Correct Joupon rate, semiannual payment, $1,000 par value bond that matures...

Q:

1. Consider a $100 par value bond that has an 8% coupon rate, pays a semi-annual coupon, matures 2 years from today, and is priced to yield 6%. Calculate the Macauly and modified durations as a...

Q:

1. Consider a $100 par value bond that has an 8% coupon rate, pays a semi-annual coupon, matures 2 years from today, and is priced to yield 6%. Calculate the Macaulx and modified durations as a...

Q:

1. Consider a $100 par value bond that has an 8% coupon rate, pays a semi-annual coupon, matures 2 years from today, and is priced to yield 6%. Calculate the Macauly and modified durations as a...

Q:

Maggie's Magazines ( MM ) has straight nonconvertible bond that currently yield 7 % . MM ' s stock sells for $ 2 2 per share, has an expected constant growth rate of 7 % , and has a dividend yield of...

Q:

Question 7, P11.12 (similar to) HW Score: 0%, 0 of 10 points O Points: 0 of 1 Save A $1,000 par value bond with a 8.75% coupon rate (semianual interest) matures in 9 years and currently sells for...

Q:

Find the value of given limit. Find the value of given limit. Given: lim (1-x) - 1 2 x 0 (1-x) - 1 Find: The value of given limit.

Q:

Select the best answer choice for each of the following items. 1. Perez Company's operations are unrelated to the operations of its subsidiary. Certain balance sheet accounts of the foreign...

Q:

E 3 . 1 4 Consolidation with Previously Unrecorded Intangibles and Goodwill ( see related E 2 . 1 0 ) \ ( L 0 4 \ ) Brightcove, Inc. acquires all of the stock of Ciber, Inc. for \ ( \ $ 8 0 \ )...

Q:

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

Q:

Thanks to an unseasonably warm spring, you will be able to open the first 9 holes of your 18-hole city golf course April 1,two weeks earlier than in prior years.Prepare an announcement that could be...

Q:

Inspired by a popular television program, and with an eye toward improving employees general health, your company has decided to sponsor a Biggest Loser Contest.Those interested in participating must...

Q:

Global. Appreciation.Elizabeth Morton spent a semester with your family as an exchange student from Australia. Six months after Elizabeth returned home, you and your family spent two weeks with her...