Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual...

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Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual...

Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual coupon payments. The bond can be called at par in five years or anytime thereafter on a coupon payment date. If the bond is currently trading for $1040.79, then its yield to call is closest to:

Group of answer choices

3.8%

7.0%

7.6%

8.0%

business finance

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Answer 1

Answer #1

price pv PMT fv x coupon rate/2 FV call value NPER rate YTC*2 (number of payments) -RATE(NPER,PMT,-PV,FV) 7.0% Yield to call

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Answer 2

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Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual...

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3 Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semiannual...

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Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual...

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