One year of coupon payments


A 5.50 percent coupon bond with 14 years left to maturity can be called in 4 years. The call premium is one year of coupon payments. It is offered for sale at $1,092.50.

Required:

What is the yield to call of the bond? (Assume that interest payments are paid semi annually.) (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

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Finance Basics: One year of coupon payments
Reference No:- TGS0556938

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