PPT Slide

A 10-year, 10% semiannual coupon,

$1,000 par value bond is selling for

$1,135.90 with an 8% yield to maturity.

It can be called after 5 years at $1,050.

What’s the bond’s nominal yield to

call (YTC)?

10 -1135.9 50 1050

N I/YR PV PMT FV

3.765 x 2 = 7.53%

INPUTS

OUTPUT

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