What is the bond nominal yield to call for abc industries

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Yields to maturity and call

Problem 1: ABC Industries has a bond outstanding with 30 years to maturity, a 4.8% coupon paid semiannually, and a $1,000 par value. The bond has a 3.6% nominal yield to maturity, but it can be called in 5 years at a price of $1,223.21. What is the bond's nominal yield to call?

a. 2.00%

b. 2.75%

c. 3.15%

d. 3.50%

e. 4.00%

Reference no: EM132960866

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