Find out the yield to call for bonds, Finance Basics

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Find out the yield to call for bonds

Problem:

Alex plans to purchase a callable bond of Horizon Inc. The bond is 20-year to maturity, carry 13.5% annual coupon, paid semi-annually, and have a$1,000 par value. The bond is selling now for $1,287 each. The bond can be called back in 7 years at a call price $1,067.5.

Required:

Question: What is the yield to call for these bonds?

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Finance Basics: Find out the yield to call for bonds

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Finance Basics: Find out the yield to call for bonds

Reference No:- TGS0893220

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Manipulation of the numbers

Q : Calculate the annual depreciation allowances

Q : Find out the irr for project

Q : Current market price of the bonds

Q : Find out the yield to call for bonds

Q : Wap which will act as a simple four-function calculator

Q : Similarities between warrants and convertible bonds

Q : Seasoned equity offering

Q : Design a dfsa

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Find out the yield to call for bonds

Reference No:- TGS0893220

Recent Questions Asked Finance Basics

Q : Manipulation of the numbers

Q : Calculate the annual depreciation allowances

Q : Find out the irr for project

Q : Current market price of the bonds

Q : Find out the yield to call for bonds

Q : Wap which will act as a simple four-function calculator

Q : Similarities between warrants and convertible bonds

Q : Seasoned equity offering

Q : Design a dfsa

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