Thatcher Corporation's bonds will mature in 17 years. The bonds have a face value of $1,000 and an 11% 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. Do not round off intermediate. Round your answers to two decimal places.
YTM is the rate at which PV of Cash Inflows are equal to PV of Cash Outflows
YTM is 0.052 per six months & 0.1040 i.e 10.4% per anum
YTC is 11% as Price of Bond & call price are equal, YTC equals to Coupon amount.
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