A company issues a callable (at par) 20-year, 5% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date
On release, it has a price of $102 per $100 of face value. What is the yield to call of this bond when it is released?
A) 2.94%
B) 4.11%
C) 5.60%
D) 6.66%
Answer: A
Business
You might also like to view...
For any set of numerical data values arranged in an ascending or descending order, the value of the observation in the center is called the weighted mean
Indicate whether the statement is true or false
Business
If a producer is trying to break into an established market, and wants to encourage consumers to compare its product to competitors, what type of distribution channel should be used?
A) one that offers side by side comparison B) one with reduced bandwidth C) one that provides slotting D) one that emphasizes individual analysis E) one that offers technical assistance
Business