Homework answers / question archive / A company issues a 15-year $6500 bond, redeemable at 99 with bond interest at j4 = 6%

A company issues a 15-year $6500 bond, redeemable at 99 with bond interest at j4 = 6%

Finance

Share With

A company issues a 15-year $6500 bond, redeemable at 99 with bond interest at j4 = 6%. The bond is callable at the end of 5 years for $4830 or at the end of 10 years for $6405. Determine the price to guarantee the investor a yield of j4 = 11%.