Currently, Company A ' s bonds sell for $ 1 , 1 3 5 . They pay
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Question:
Currently, Company As bonds sell for $ They pay a $ annual coupon, have a year maturity, and a $ par value, but they can be called in years at $ Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTCSubtract the YTC from the YTM
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