In: Finance
A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 6 years at $1,215.08, and currently sell at a price of $1,376.52. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places.
YTM: %
YTC: %
What return should investors expect to earn on these bonds?
-Select-IIIIIIIV
Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM |
Answer II |