FINANCE Investment Analysis and Portfolio Management CHAPTER 18 PROBLEM 2
Assume that you purchased an 8 percent, 20-year,$1,000 par, semiannual payment bond priced at $l,012.50 when it has 12 years remaining until maturity. Compute :
a. Its promised yield to maturity
b. Its yield to call if the bond is callable in three years with an 8 percent premium.
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24 Aug 2015