Problemannasam corporation recently issued 10-yer bonds the, Ask an Expert

Accounting

Problem:

Annasam Corporation recently issued 10-yer bonds. the bonds have a coupon rate of 6% and pay interest semiannually. Also the bonds are callable in 4 years at a call price equal to 105% of par value. The par value of the bonds is $1000.

Required:

Question: If the yield to maturity is 9% what is the yield to call? (2 part problem using PV and rate)

A. 13.45%
B. 8.33%
C. 10.20%
D. 14.08%

Note: Please show guided help with steps and answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170954

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