What is the bond yield to call


Problem:

If a bond will mature in 6 years. The bonds have a face value of $1000 and a 9.00 % coupon rate, paid semiannually. The price of the bonds is $865.50. The bonds are callable in 4 years at a call price of $1,155.00.

What is the bond's yield to call? Please explain in detail and show your work.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the bond yield to call
Reference No:- TGS0875820

Expected delivery within 24 Hours