A bond has the following characteristics: Bond Maturity 10 years Call Date 3 Years Coupon Rate 8% Par Value

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A bond has the following characteristics: Bond Maturity 10 years Call Date 3 Years Coupon Rate 8% Par Value

Post by answerhappygod »

A bond has the following characteristics:
Bond Maturity 10 years
Call Date 3 Years
Coupon Rate 8%
Par Value $1,000
Current Price $1,050
Call Price $1,075
The bond pays semiannual interest
What is the bond's yield to call?
Select one:
a. 8%
b. 7.29%
c. 3.64%
d. 4.17%
e. 8.34%
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”