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Sadik Inc.'s bonds currently sell for $1,300 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to

Respuesta :

Tundexi

Answer:

5.31%

Explanation:

Missing word "What is their yield to call (YTC)?"

Nper = 5

Pmt = 105

Pv = -1300

FV = 1100

Using the MsExcel Rate function to derive the yield to call (YTC)

Yield to call = Rate(Nper, Pmt, -Pv, Fv)

Yield to call = Rate(5, 105, -1300, 1100)

Yield to call = 0.053098755

Yield to call = 5.31%

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