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Ten years ago, the Circus Corp. sold a 20-year bond issue with a 9 percent annual...

Ten years ago, the Circus Corp. sold a 20-year bond issue with a 9 percent annual coupon rate and a 3 percent call premium. Today, Circus called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of return (yield to call) for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.

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Answer #1

They puachased te bond 0 civcu corp called he bonds kond x 100100 punchese rice. -Йеле iVn yield t al 0 1030-100iD 1O 30+1/00c 2 01 3 lOt5 0.09 163 x 100

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