Yield to Call of the Bond Assignment | Homework For You

Harry is considering adding a callable bond to his portfolio. He knows the corporate bond is callable at 7 years versus the original 10 year period, with a 2% call premium. Currently the price of the 3% coupon bond is $1,150, what is the yield to call of the bond? Assume 1,000 redemption value and semi-annual coupon payments. 0.52% 105% 2x 3x Get Finance homework help today