What is the yield to call


Problem:

Fooling Company has a 13 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 5 years, and a call premium of $25.

Required:

Question: What is the yield to call (YTC) for this bond if the current price is 110 percent of par value?

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Finance Basics: What is the yield to call
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