A 690 percent coupon bond with 28 years left to maturity


A 6.90 percent coupon bond with 28 years left to maturity can be called in nine years. The call premium is one year of coupon payments. It is offered for sale at $1,106.85. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)

Solution Preview :

Prepared by a verified Expert
Finance Basics: A 690 percent coupon bond with 28 years left to maturity
Reference No:- TGS02355390

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)