What is the yield to call for this bond

Assignment Help Financial Management

Reference no: EM131536991

Fooling Company has a 12.4 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $100. What is the yield to call (YTC) for this bond if the current price is 106 percent of par value?

Reference no: EM131536991

Questions Cloud

What is the price volatility of this bond : Follow Bank has a $1 million position in a five-year, zero-coupon bond with a face value of $1, 402, 552. What is the price volatility of this bond?

American put option on a non-dividend-paying stock : Consider a 7-month $135 American put option on a non-dividend-paying stock.

What is the required rate of return in this new issue : What is the required rate of return in this new issue?

Adjustments you will make for interest rate and inflation : How would you handle the shortfalls of working capital based on the adjustments you will make for the interest rate and inflation?

What is the yield to call for this bond : What is the yield to call (YTC) for this bond if the current price is 106 percent of par value?

What is company free cash flow for year one of this project : A firm is considering the purchase of a machine which would represent an investment of $31 million, What is company’s free cash flow for year 1 of this project?

What is the depreciation expense in year : What is the depreciation expense in year 2? What is this projects Expected NPV?

Develop a ratio that business might use to measure impact : Develop a ratio that a business might use to measure the impact of its operations on:

Relationship between implied volatility and exercise price : Should financial analysis play the dominant role in capital budgeting decisions? What is the relationship between the implied volatility and the exercise price.

User Account

All Pages