A bond that settles on June 7, 2022, matures on July 1, 2042, and may be called at any time after July 1, 2032, at a price of 180. The coupon rate on the bond is 6.4 percent and the price is 196.00. What are the yield to maturity and yield to call on this bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A bond that settles on June 7, 2022, matures on July 1, 2042, and may be called at any time after July 1, 2032, at a
price of 180. The coupon rate on the bond is 6.4 percent and the price is 196.00. What are the yield to maturity and
yield to call on this bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2
decimal places.
Transcribed Image Text:A bond that settles on June 7, 2022, matures on July 1, 2042, and may be called at any time after July 1, 2032, at a price of 180. The coupon rate on the bond is 6.4 percent and the price is 196.00. What are the yield to maturity and yield to call on this bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
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