A 6.5 percent coupon bond with 12 years left to maturity can be called in four years. The call premium is one year of co
Posted: Sun Jul 03, 2022 12:54 pm
A 6.5 percent coupon bond with 12 years left to maturity can becalled in four years. The call premium is one year of couponpayments. It is offered for sale at $1,190.25. What is the yield tocall of the bond? (Assume interest payments are paid semiannuallyand par value is $1,000.) A. 1.48 percent B. 2.96 percent C. 6.5percent D. 7.23 percent