A 6.60 percent coupon bond with 26 years left to maturity can be called in seven years. The call premium is one year of coupon payments. It is offered for sale at $1,115.95. What is the yield to call of the bond? (Assume interest payments are semiannual) Note: Round your answer to 2 decimal places. Yield to call % Help

A 6.60 percent coupon bond with 26 years left to maturity can be called in seven years. The call premium is one year of coupon payments. It is offered for sale at $1,115.95. What is the yield to call of the bond? (Assume interest payments are semiannual) Note: Round your answer to 2 decimal places. Yield to call % Help

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter7: Bonds And Their Valuation

Section: Chapter Questions

Problem 16P: BOND VALUATION You are considering a 10-year, 1,000 par value bond. Its coupon rate is 8%, and...

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