Question: I got the answer for the first two which is 7.85 and 7.84. The answer for c should be 9.86% but I don't know the
I got the answer for the first two which is 7.85 and 7.84. The answer for c should be 9.86% but I don't know the steps to get it.
Assume that you purchase an 8 percent semi-annual, 20-year, $1,000 par bond, priced at $1,012.50, when it has 12 years remaining until maturity. a. What is the bond's approximate yield-to-maturity (YTM)? b. What is the bond's actual yield-to-maturity (YTM)? C. If the bond is callable in 3 years, what will its current yield-to-call (YTC) be
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
