FFactory0x
Diamond Member
How do you go about doing this problem. Can someone explain what i need to find it?
Four years ago, your firm issued $1,000 par, 25-year bonds, with a 7 percent annual coupon rate and a 10 percent call premium.
If these bonds are now called, what is the approximate yield to call (YTC) for the investor who originally purchased them when they were issued?
the formula is
AYC = [(Ct + [Pm-Pm/nc]]/[Pc-Pm/2]
Four years ago, your firm issued $1,000 par, 25-year bonds, with a 7 percent annual coupon rate and a 10 percent call premium.
If these bonds are now called, what is the approximate yield to call (YTC) for the investor who originally purchased them when they were issued?
the formula is
AYC = [(Ct + [Pm-Pm/nc]]/[Pc-Pm/2]
