What is yield to call ytc if gm decides to call the bond


GM corporate Bond is currently priced at $1,200, the maturity is 20 years, and it pays a 14% coupon. The bond can be called in 5 years (it has 5 years of call protection). What is YIELD TO CALL (YTC) if GM decides to call the bond after 5 years at a premium of $1,100?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is yield to call ytc if gm decides to call the bond
Reference No:- TGS02344373

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)