Yield to Maturity / Yield to Call
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10. BEA Industries has just issued a callable (at 102) ten-year, 8% coupon bond with semi-annual coupon payments. The bond can be called at 102 in three years or anytime thereafter on a coupon payment date. It has a current price of 99. What is the Yield to Maturity (YTM) on this bond? (Points: 2)
8.65%
8.15%
8.98%
8.25%
8.75%
11. BEA Industries has just issued a callable (at 102) ten-year, 8% coupon bond with semi-annual coupon payments. The bond can be called at 102 in three years or anytime thereafter on a coupon payment date. It has a current price of 99. What is the Yield to Call (YTC) on this bond? (Points: 2)
8.86%
8.35%
8.87%
8.98%
8.78%
12. Citi Enterprises has just issued a callable (at par) fifteen-year, 7% coupon bond with semi-annual coupon payments. The bond can be called at par in five years or anytime thereafter on a coupon payment date. It has a current price of 101. What is the Yield to Maturity (YTM) on this bond? (Points: 2)
6.98%
6.36%
6.89%
8.98%
6.78%
13. Citi Enterprises has just issued a callable (at par) fifteen-year, 7% coupon bond with semi-annual coupon payments. The bond can be called at par in five years or anytime thereafter on a coupon payment date. It has a current price of 101. What is the Yield to Call (YTC) on this bond? (Points: 2)
6.86%
6.76%
6.87%
6.67%
6.47%
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Solution Summary
The solution explains how to determine the yield to maturity and yield to call.
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