Problem 4 - Regal Health Plans issued a ten-year, 12 percent annual coupon bond. The bond now sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060. b. What is the bond's yield to call?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
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Problem 4 - Regal Health Plans issued a ten-year, 12 percent annual coupon bond. The bond now sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060. b. What is the bond's yield to call? 

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