Janice wants to earn at least a 4.50% yield on a callable corporate bond. The bond will mature in 20-years, has a coupon rate of 7.00% with semi-annual payments, and a face value of $1,000. Janice expects the bond to be called in 7 years at a call price of $1,050. What is the maximum price she should pay for this bond to earn the 4.50% yield?

Answer rating: 100% (QA)

To calculate the maximum price Janice should pay for the callable corporate bond to earn a 450 yield ... View the full answer