An analyst observes a Widget & Co. 7.125 percent, 4-year, semiannual-pay bond trading at 102.347 percent of par (where par $1,000). The bond is first callable at 101 in two years, and first putable at 100 in two years. What is the bond's yield to first put? O A. 6.450% B. 2.932% OC. 4.225% D. 5.864%
An analyst observes a Widget & Co. 7.125 percent, 4-year, semiannual-pay bond trading at 102.347 percent of par (where par $1,000). The bond is first callable at 101 in two years, and first putable at 100 in two years. What is the bond's yield to first put? O A. 6.450% B. 2.932% OC. 4.225% D. 5.864%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:An analyst observes a Widget & Co. 7.125 percent, 4-year, semiannual-pay bond trading at 102.347 percent of par
(where par= $1,000). The bond is first callable at 101 in two years, and first putable at 100 in two years.
What is the bond's yield to first put?
O A. 6.450%
B. 2.932%
C. 4.225%
D.5.864%
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