Determine the Yield-To-Call (To the Nearest 0

question 45

Multiple Choice

Determine the yield-to-call (to the nearest 0.1 of a percent) of an LTV bond with a 14 percent coupon, that pays interest semiannually. The bond can be called in 7 years, has a call premium of $140, and is currently selling for $1,154.

• A) 12.0%
• B) 16.2%
• C) 13.7%
• D) 14%

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