You just purchased bond ABB at 95% of its par value. The bond is callable in 7

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You just purchased bond ABB at 95% of its par value. The bond is callable in 7 years with a call premium of 5% of par value. The annual coupon rate is 8%. This is an annual coupon bond.

What is the Yield to Call for you at this moment?

Related Book For answer-question

Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Posted Date: Apr 17, 2023 01:28 AM

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You just purchased bond ABB at 95% of its par value. The bond is callable in 7

Question:

Expert Answer:

To calculate the yield to call for the bond we need to find the present value of all future cash flo... View the full answer

Fundamentals of Investing

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