Suppose you were offered an 18-year, 13 percent annual coupon, RM1,000 par value bond at a price of RM1,494.93. Calculate; i. Yield to Maturity (YTM) ii. Yield to Call (YTC) if call price is RM1,200 and remaining years is 8 years.
Suppose you were offered an 18-year, 13 percent annual coupon, RM1,000 par value bond at a price of RM1,494.93. Calculate; i. Yield to Maturity (YTM) ii. Yield to Call (YTC) if call price is RM1,200 and remaining years is 8 years.
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
Problem 1PS
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Suppose you were offered an 18-year, 13 percent annual coupon, RM1,000
par value bond at a price of RM1,494.93. Calculate;
i. Yield to Maturity (YTM)
ii. Yield to Call (YTC) if call price is RM1,200 and remaining years is 8
years.
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