Problemthatcher corporations bonds will mature in 11 years, Ask an Expert

Finance

Problem:

Thatcher Corporation's bonds will mature in 11 years. The bonds have a face value of $1,000 and a 9% coupon rate, paid semiannually. The price of the bonds is $1,050. The bonds are callable in 5 years at a call price of $1,050.

Required:

Question 1: What is their yield to maturity?

Question 2: What is their yield to call?

Note: Show all workings.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91175300

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