Xerox has a 8.5% coupon bond that has a remaining maturity of 16 years. The bond is callable in three years at a price of $1,100. Its current market price is $1,250.
B6. (Yield to call)
a. If the required return for this bond is 10.0% (assuming itâ€™s not callable), what is the value of the bond?
b. What is the yield to maturity (based on its current market price)? c. What is the yield to call? |