Goodwynn & Wolf Incorporated (G&W) issued a bond 8 years ago. The bond had a 29-year maturity,
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Goodwynn & Wolf Incorporated (G&W) issued a bond 8 years ago. The bond had a 29-year maturity, a 9% coupon paid annually, a 6% call premium and was issued at par, $1,000. Today, G&W called the bonds. If the original investors had expected G&W to call the bonds in 8 years, what was the yield to call at the time the bonds were issued? Round your answer to two decimal places.
Related Book For
Financial Management Theory and Practice
ISBN: 978-1337902601
16th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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