A 25-year bond with a 10.4 percent semiannual coupon and a $1,000 face value has a nominal yield to maturity of 8.8 percent. The bond currently sells for $1,160.70. The bond, which may be called after 7 years, has a nominal yield to call of 8.43% percent. What is the bond's call price? O $1,104.00 O $1,114.00 O $1,124.00 O $1,134.00 O $1,144.00
A 25-year bond with a 10.4 percent semiannual coupon and a $1,000 face value has a nominal yield to maturity of 8.8 percent. The bond currently sells for $1,160.70. The bond, which may be called after 7 years, has a nominal yield to call of 8.43% percent. What is the bond's call price? O $1,104.00 O $1,114.00 O $1,124.00 O $1,134.00 O $1,144.00
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 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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