In: Finance
Bangladesh Petroleum's 10% coupon rate, BDT 1000 par value bonds that mature in 10 years are callable 6 years from now at a price of BDT 1050 and redeemable at par in maturity. The bonds currently sell at a price of BDT 1353.54. What could be the internal rate of return as an investor of this bond, if the market interest is expected to stable for the following 6 years and later to decline?