Ch 6 problems - interest What is the bond’s yield to call if it is purchased today at a price determined by its yield to maturity a 5.40 b 5.56 c

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Serenity Witten AGEC 424 Chapter 6 Problems (5 th edition) 7. 9. 10. 11. 13. 15. yield to call problem: Berry Corp. issued a $1,000 bond with a 14% coupon paid semiannually. It has a yield to maturity of 11%. The bond matures in 15 years. However, it is callable in 10 years with a call premium of one year’s
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Unformatted text preview: interest. What is the bond’s yield to call if it is purchased today at a price determined by its yield to maturity? a. 5.40% b. 5.56% c. 8.65% d. 10.79% e. 11.12%...
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This note was uploaded on 11/08/2010 for the course AGEC 424 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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