Micron Technology's bonds currently sell for $1,220 and have a par value of $1,000. They pay...

 

 

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Micron Technology's bonds currently sell for $1,220 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)? Your answer should be between 4.56 and 8.32, rounded to 2 decimal places, with no special characters. Micron Technology's bonds currently sell for $1,220 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)? Your answer should be between 4.56 and 8.32, rounded to 2 decimal places, with no special characters.

Answer rating: 100% (QA)

To calculate the yield to call YTC of Micron Technologys bonds we need to use the following formula ... View the full answer