What is its yield to call ytc hint set up the cash flows on


now assume that the 15 years bond is callable after five years at $1,050

a- what is its yield to call YTC? Hint set up the cash flows on a timeline. if the bond is called, in vestors will receive interest payments for five year and then receve $1,050 $ 1,000 in principal and call premium of five years. the YTM on this cash flow stream is the bonds YTC.

b- do you think it is likely that the bond will be called?Explain.

 

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Finance Basics: What is its yield to call ytc hint set up the cash flows on
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