Question

Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price =...

Bond Features
Maturity (years) 5
Face Value = $1,000
Coupon Rate = 3.00%
Current Price = $1,100
Coupon dates (Annual)
Time to call (years) 3
Price if Called

$1,030.00

What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date?

A. 0.62%
B.

0.63%

C. 2.75%
D. -0.31%
E. 2.73%
0 0
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Answer #1

N = 5 years face value = 1000 Coupon = 30 Present Value = 1100 using financial calculator, N=5 fv = 1000 PMT = 30 PV = – 1100

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