All Related Questions of Yield To Call

Q: Kaufman Enterprises has bonds outstanding with a $1,000 face

Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,175. The bonds may be called...

Q: It is now January 1, 2009, and you are considering

It is now January 1, 2009, and you are considering the purchase of an outstanding bond that was issued on January 1, 2007. It has a 9.5% annual coupon and had a 30-year original maturity. (It matures...

Q: Robert Black and Carol Alvarez are vice presidents of Western Money Management

Robert Black and Carol Alvarez are vice presidents of Western Money Management and Co directors of the company’s pension fund management division. A major new client, the California League of Cities,...

Q: A 6.75 percent coupon bond with 26 years left to

A 6.75 percent coupon bond with 26 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,135.25. What is the yield to call o...

Q: A 5.25 percent coupon bond with 14 years left to

A 5.25 percent coupon bond with 14 years left to maturity can be called in four years. The call premium is one year of coupon payments. It is offered for sale at $1,075.50. What is the yield to call...

Q: What is the yield to call and why is it important to

What is the yield to call and why is it important to a bond investor?

Q: a. Bond; Treasury bond; corporate bond; municipal bond

a. Bond; Treasury bond; corporate bond; municipal bond; foreign bond b. Par value; maturity date; coupon payment; coupon interest rate c. Floating-rate bond; zero coupon bond; original issue discoun...

Q: Arnot International’s bonds have a current market price of $1,

Arnot International’s bonds have a current market price of $1,200. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 year...

Q: Sam Strother and Shawna Tibbs are vice presidents of Mutual of

Sam Strother and Shawna Tibbs are vice presidents of Mutual of Seattle Insurance Company and co_directors of the company’s pension fund management division. An important new client, the North-Western...

Q: Define and discuss how to calculate a bond’s coupon rate, current

Define and discuss how to calculate a bond’s coupon rate, current yield, expected capital gains yield for the current year, yield to maturity (YTM), and yield to call (YTC). What might be some represe...

Q: A 20-year $1,000 par value bond has

A 20-year $1,000 par value bond has a 7% annual coupon. The bond is callable after the 10th year for a call premium of $1,025. If the bond is trading with a yield to call of 6.25%, what is the bond’s...

Q: Fooling Company has a 10 percent callable bond outstanding on the market

Fooling Company has a 10 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $100. What is the yield to call (YTC) f...

Q: For callable bonds, the financial press generally reports either the yield

For callable bonds, the financial press generally reports either the yield to maturity or the yield to call. Often yield to call is reported for premium bonds, and yield to maturity is reported for di...

Q: A bond that settles on June 7, 2016, matures on

A bond that settles on June 7, 2016, matures on July 1, 2036, and may be called at any time after July 1, 2026, at a price of 105. The coupon rate on the bond is 6 percent and the price is 115.00. Wh...

Q: Atlantis Fisheries’ zero coupon bonds referred to in Problem 8 are callable

Atlantis Fisheries’ zero coupon bonds referred to in Problem 8 are callable in 10 years at a call price of $500. Using semiannual compounding, what is the yield to call for these bonds?

Q: For a callable Treasury bond selling above par, is it necessarily

For a callable Treasury bond selling above par, is it necessarily true that the yield to call will be less than the yield to maturity? Why or why not?

Q: Assume a municipal bond has 18 years until maturity and sells for

Assume a municipal bond has 18 years until maturity and sells for $5,640. It has a coupon rate of 5.70 percent and it can be called in 10 years. What is the yield to call if the call price is 110 perc...

Q: You own a bond with a 6 percent coupon rate and a

You own a bond with a 6 percent coupon rate and a yield to call of 6.90 percent. The bond currently sells for $1,070. If the bond is callable in five years, what is the call premium of the bond?

Q: Using annual compounding, find the yield to maturity for each of

Using annual compounding, find the yield to maturity for each of the following bonds. a. A 9.5%, 20-year bond priced at $957.43 b. A 16%, 15-year bond priced at $1,684.76 c. A 5.5%, 18-year bond price...

Q: A $1,000 bond originally issued at par maturing in

A $1,000 bond originally issued at par maturing in exactly 10 years bears a coupon rate of 8 percent compounded annually and a market price of $1,147.20. The indenture agreement provides that the bond...

Q: In 2006, BCC issued 8⅝ percent debentures that will mature

In 2006, BCC issued 8⅝ percent debentures that will mature on December 1, 2046. a. If an investor purchased one of these bonds ($1,000 denomination) on December 1, 2016, for $1,050, determine the yie...

Q: Consider again the BCC 8⅛ percent debentures that mature on July

Consider again the BCC 8⅛ percent debentures that mature on July 15, 2036 (see problem 6). Determine the yield to call if the bonds are called on July 15, 2022, at $1,016.55.

Q: Is the yield to call always greater than the yield to maturity

Is the yield to call always greater than the yield to maturity?

Q: A 30-year maturity, 7% coupon bond paying coupons

A 30-year maturity, 7% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 6% (3% per half-year). a. What is...

Q: A 30-year maturity, 6% coupon bond paying coupons

A 30-year maturity, 6% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 5% (2.5% per half-year). a. What...

Q: Using annual compounding, find the yield to maturity for each of

Using annual compounding, find the yield to maturity for each of the following bonds. a. A 9.75%, 18-year bond priced at $962.41 b. A 14%, 20-year bond priced at $1,612.98 c. A 6.25%, 15-year bond pri...