Delta motors has bonds outstanding which will mature in 12


Delta Motors has bonds outstanding which will mature in 12 years. The bonds pay a 12% semi-annual coupon. The bonds currently have a yield to maturity of 10%.

The bonds are callable in 8 years and have a call price of $1,050. What is the bonds' yield to call?

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Financial Management: Delta motors has bonds outstanding which will mature in 12
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