What is the bond’s nominal yield to call? and 2013 Dec.14,Col. Bond House.

What is the bond's nominal yield to call?

2.Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $ 1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $ 1,120. What is the bond's nominal yield to call?


Bond best answer:

Answer by Robert M
take the premium of $ 120 and assume it is paid over the 6 years to call

calculate the current price based upon the 6.5% YTM in 15 years.

Bond

2013 Dec.14,Col. Bond House.


Image by gardener41
Col. William Bond/Jesse Hawley house. The first brick house built in Lockport and one of the first brick homes in Niagara County. This historic house was built between 1823 in 1824 by Col. William Bond.. When bond went bankrupt the house became the property of Jesse Hawley.

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