What is yield to maturity of this bond when it is released

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1. A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $104 per $100 of face value. What is the yield to maturity of this bond when it is released?

A) 5.47%

B) 4.00%

C) 0.60%

D) 1.92%

2. A firm issues $170 million in straight bonds at par and a coupon rate of 8.5%. The firm pays fees of 2% on the face value of the bonds. The net amount of funds that the debt issue will provide for the firm is ________.

A) $175 million B) $167 million C) $150 million D) $158 million

Reference no: EM131346613

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