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Problem 24-12

Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $99. What is the bond’s yield to maturity and yield to call?

Coupon Rate %5.00
Payment Frequency semi-annually
Time until first call date (years) 2
Term of bond (years) 3
Call Price $100.00
Current Price $99.00
Coupon Payment
Yield to Call
Yield to Maturity

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Jamar Ferry
Jamar FerryLv2
28 Sep 2019

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