Problemsadik incs bonds currently sell for 1270 and have a, Ask an Expert

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Problem:

Sadik Inc.'s bonds currently sell for $1,270 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100.

Required:

Question: What is their yield to call (YTC)?

6.89%
5.89%
5.18%
6.54%
6.30%

Note: Please provide reasons to support your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174637

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