In: Finance
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%
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.