An 11% coupon callable bond with $100 par and maturing in 5 years is yielding 11.60%. The yield to call is 13.10%. The next call date is in 2 years at the call price of $101.90. What is the callable bond's call option premium? O $1.07, is this right? can yiu check please. Thanks! O $2.12 O $4.29 O $1.52
An 11% coupon callable bond with $100 par and maturing in 5 years is yielding 11.60%. The yield to call is 13.10%. The next call date is in 2 years at the call price of $101.90. What is the callable bond's call option premium? O $1.07, is this right? can yiu check please. Thanks! O $2.12 O $4.29 O $1.52
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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An 11% coupon callable bond with $100 par and maturing in 5 years is yielding 11.60%. The yield to call is 13.10%. The next call date is in 2 years at the call price of $101.90. What is the callable bond's call option premium?
O $1.07, is this right? can yiu check please. Thanks!
O $2.12
O $4.29
O $1.52
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