Dyl Inc.'s bonds currently sell for $900 and have a par value of $1,000. They pay an $80 annual coupon and have a 20-year maturity, but they can be called in 6 years at $1,080. What is their yield to maturity (YTM)? a. 8.89% b. 5.45% c. 9.97% d. 9.10% e. 9.13%

Dyl Inc.'s bonds currently sell for $900 and have a par value of $1,000. They pay an $80 annual coupon and have a 20-year maturity, but they can be called in 6 years at $1,080. What is their yield to maturity (YTM)? a. 8.89% b. 5.45% c. 9.97% d. 9.10% e. 9.13%

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 7P: Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate,...

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a. 8.89%

b. 5.45%

c. 9.97%

d. 9.10%

e. 9.13%

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