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Business Homework Solutions
#16497
McGriff Motors , call price, Semi-Annual Coupon, Bonds, Yield to Maturity, Yield to Call
McGriff Motors has bonds outstanding which will mature in 12 years. The bonds pay a 12 percent semiannual coupon and have a face value of $1,000 (i.e., the bonds pay a $60 coupon every six months). The bonds currently have a yield to maturity of 10 percent. The bonds are callable in 8 years and have a call price of $1,050. What are the bonds' yield to call?
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9.89%
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12.00%
**Please see attachment for multiple choice options.
Answers a multiple choice question on Yield to Call.
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