Question: part 1 has already been done, just need help with part 2 PT1 A bond currently sells for $1,075. It has an 9 years to
part 1 has already been done, just need help with part 2
| PT1 A bond currently sells for $1,075. It has an 9 years to maturity, an annual coupon of 8.7%, paid semi-annual, and a par value of $1,000. What is its yield to maturity? What is its current yield? | ||||||
| Years to Maturity | 9 | |||||
| Annual Payment | $87.00 | |||||
| Current price | $1,075.00 | |||||
| Par value = FV | $1,000.00 | |||||
| Going rate, rd =YTM: | 7.523% | |||||
| Annual Payment | $87.00 | |||||
| Current price | $1,075.00 | |||||
| Current yield: | 8.09% | |||||
| PT.2 The bond above, can be called in 5 years at $1,087. What is the YTC? | ||||||
| Years to Call | ||||||
| Annual Payment | ||||||
| Current price | ||||||
| Call price | ||||||
| YTC | ||||||
part 1 has already been done, just need help with part 2
| PT1 A bond currently sells for $1,075. It has an 9 years to maturity, an annual coupon of 8.7%, paid semi-annual, and a par value of $1,000. What is its yield to maturity? What is its current yield? | ||||||
| Years to Maturity | 9 | |||||
| Annual Payment | $87.00 | |||||
| Current price | $1,075.00 | |||||
| Par value = FV | $1,000.00 | |||||
| Going rate, rd =YTM: | 7.523% | |||||
| Annual Payment | $87.00 | |||||
| Current price | $1,075.00 | |||||
| Current yield: | 8.09% | |||||
| PT.2 The bond above, can be called in 5 years at $1,087. What is the YTC? | ||||||
| Years to Call | ||||||
| Annual Payment | ||||||
| Current price | ||||||
| Call price | ||||||
| YTC | ||||||
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