Ford Motor Company has bonds that currently sell for $1,140 and have a par value of...

Ford Motor Company has bonds that currently sell for $1,140 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)?

Group of answer choices

8.07%

7.74%

8.62%

7.35%

Solutions

Expert Solution

Ans is 8.62%

Calculations-

As no method was mentioned I have solved the problem using excel function.

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 1 year ago

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