Annual coupon payment, Financial Accounting

Arnot International's bonds have a present market price of $1,250. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be known  in 5 years at 109% of face value (Call price = $1,090).

a. What is the yield to maturity?

b. What is the yield to call, if they are known  in 5 years?

 

Posted Date: 3/28/2013 4:07:13 AM | Location : United States







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