GHI Co's 15-year bonds currently sell for $1,125 and have a par value of $1,000. The coupon rate is 9.45% and interest payments are made semi-annually. The bonds can be called 5 years after issue at a premium of 5% over par value. What is their yield to call (YTC), 1 year after the initial issue? O 6.9250% O`7.9391% O 5.8964% 079537%
GHI Co's 15-year bonds currently sell for $1,125 and have a par value of $1,000. The coupon rate is 9.45% and interest payments are made semi-annually. The bonds can be called 5 years after issue at a premium of 5% over par value. What is their yield to call (YTC), 1 year after the initial issue? O 6.9250% O`7.9391% O 5.8964% 079537%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter20: Hybrid Financing: Preferred Stock, Warrants, And Convertibles
Section: Chapter Questions
Problem 1P: Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually...
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![GHI Co's 15-year bonds currently sell for $1,125 and have a par value of $1,000. The coupon
rate is 9.45% and interest payments are made semi-annually. The bonds can be called 5 years
after issue at a premium of 5% over par value. What is their yield to call (YTC), 1 year after the
initial issue?
O 6.9250%
7.9391%
O 5.8964%
7.9537%
O 6.8962%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7470378f-99ab-497d-81e7-b8662f016d73%2F3c7efc11-83a5-46ed-a583-184e83dd34da%2Fvw9dk2x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:GHI Co's 15-year bonds currently sell for $1,125 and have a par value of $1,000. The coupon
rate is 9.45% and interest payments are made semi-annually. The bonds can be called 5 years
after issue at a premium of 5% over par value. What is their yield to call (YTC), 1 year after the
initial issue?
O 6.9250%
7.9391%
O 5.8964%
7.9537%
O 6.8962%
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