Problemalex plans to purchase a callable bond verizon inc, Ask an Expert

Finance

Problem:

Alex plans to purchase a callable bond Verizon Inc. The bond is 20 year to maturity, Carrie 13.5% annual coupon, paid semi annually, and have a 1000 Par value. The bond is selling now $1287 each. The bond can be called back in seven years at a call price of $1067.50.

Required:

What is that yield to call for these bonds? Round two decimal places in percentage form. Show your all work and describe in detail.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91145982

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