How long until the bonds may first be called


Problem:

Mattco has 9% annual coupon, $1,000 face value bonds outstanding that mature in 10 years. However, the bonds can be called before maturity at a call price of $1,050. The bonds have a yield to call of 6.5% and a yield to maturity of 7.4%. How long until these bonds may first be called?

Solution Preview :

Prepared by a verified Expert
Finance Basics: How long until the bonds may first be called
Reference No:- TGS02056775

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)