Yield to call of the bond


Problem:

A 4.75 percent coupon bond with 12 years left to maturity can be called in 2 years. The call premium is one year of coupon payments. It is offered for sale at $1037.35.

Required:

Question: What is the yield to call of the bond?

Note: Explain all calculation and formulas.

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Accounting Basics: Yield to call of the bond
Reference No:- TGS0886697

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