1 answer

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual...

Question:

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond’s nominal yield to call?

6.77%

5.09%

4.42%

5.54%

5.59%


Answers

Answer is 5.59%

В 15 А 1 2 Maturity (years) 3 Face Value 4 Coupon Rate 5 YTM 6 Current price 7 Time to Call 8 Call Price 9 Frequency 10 11 YTВ 15 А 1 2 Maturity (years) 3 Face Value 4 Coupon Rate 5 YTM 6 Current price 7 Time to Call 8 Call Price 9 Frequency 10 11 YT1 15 1000 2 Maturity (years) 3 Face Value 4 Coupon Rate 5 YTM 6 Current price 7 Time to Call 8 Call Price 9 Frequency 10 11 Y

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