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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Suppose a 10-year, 10 percent, semiannual coupon bond with a par value of $1,000 is currently selling for $1,135.90, producing a nominal yield to maturity of 8 percent. However, the bond can be called after 5 years for a price of $1,050.
What is the bond's nominal yield to call (YTC)?
The----------- YT-----------C i-----------s 8-----------.74-----------% Y-----------iel-----------d t-----------o C-----------all----------- (Y-----------TC)----------- 8.-----------74%----------- Co-----------upo-----------n r-----------ate----------- (C-----------) 1-----------0.0-----------0% -----------Par----------- va-----------lue----------- $1-----------,00-----------0.0-----------0 Y-----------ear-----------s t-----------o C-----------all----------- 5 -----------Bon-----------d V-----------alu-----------e $-----------1,0-----------50.-----------00 -----------Per-----------iod----------- Ca-----------shf-----------low----------- Di-----------sco-----------unt-----------ed -----------cas-----------hfl-----------ow