In: Finance
For questions, 39-40, use the information in the table below:
Type |
Coupon |
Maturity |
Yield to Maturity/Yield to Call |
Callable |
Payment Frequency |
Bond Price |
Corporate – Callable in 2 years @1,025 |
8.0% |
3 years |
? |
Yes |
Semi-annual |
$950 |
Municipal |
? |
5 years |
6.0% |
No |
Semi-annual |
$1,050 |
The bonds pay coupons every 6 months.