Multiple Choice
Yield to Call A 4.75 percent coupon bond with 12 years left to maturity can be called in 2 years. The call premium is one year of coupon payments. It is offered for sale at $1037.35. What is the yield to call of the bond? (Assume that interest payments are paid semi-annually and par value is $1,000.)
A) 4.60%
B) 4.68%
C) 4.75%
D) 5.05%
Correct Answer:
Verified
Correct Answer:
Verified
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