Only typing answerPlease explain step by step without table and graph thankyou What is the yield to call on a 16-year, 8% annual coupon, $1,000 par value bond that sells for $803.56and can be called after five years at $1,100?12.39%20.52%O 15.38%O-11.39%

Some bonds have option to be called before maturity of bond period to give investors exist option…

Answered: 16-year, 8% annual coupon, $1,000 par…

16-year, 8% annual coupon, $1,000 par value bond that sells for and can be called after five years at $1,100? O 12.39% O 20.52% O 15.38% O-11.39%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 4MC

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Concept explainers

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.

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Only typing answer

Please explain step by step without table and graph thankyou

What is the yield to call on a 16-year, 8% annual coupon, $1,000 par value bond that sells for $803.56
and can be called after five years at $1,100?
12.39%
20.52%
O 15.38%
O-11.39%

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