You bought a $1,000 face value Citicorp callable bond in January 2023 that is callable at 101 in 2028 and 2029 and at par after 2029. It has a coupon rate of 5.2%/year. A) Excluding interest, how much would you receive if Citicorp called the bond in 2029? B) In a few words, when is Citicorp likely to call the bond?
You bought a $1,000 face value Citicorp callable bond in January 2023 that is callable at 101 in 2028 and 2029 and at par after 2029. It has a coupon rate of 5.2%/year. A) Excluding interest, how much would you receive if Citicorp called the bond in 2029? B) In a few words, when is Citicorp likely to call the bond?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- You bought a $1,000 face value Citicorp callable bond in January 2023 that is callable at 101 in 2028 and 2029 and at par after 2029. It has a coupon rate of 5.2%/year.
- A) Excluding interest, how much would you receive if Citicorp called the bond in 2029?
- B) In a few words, when is Citicorp likely to call the bond?
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