Question

A 6.95 percent coupon bond with 29 years left to maturity can be called in six...

A 6.95 percent coupon bond with 29 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,117.35. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)

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Answer #1

PMT = fv x coupon rate/2 FV = call value price = pv NPER (number of payments) rate = YTC*2 -RATE(NPER,PMT-PV,FV) 5.61% [Rate(

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