Problemkeenan industries has a bond outstanding with 17, Ask an Expert

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Problem:

Keenan Industries has a bond outstanding with 17 years to maturity, a 9.0% nominal coupon rate, semiannual payments, and a $1,000 par value. The bond has a 7.80% nominal yield to maturity, but it can be called in 5 years at a price of $1,090.

Required:

Question: What is the bond's nominal yield to call?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162178

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