An analyst observes a Widget & Co. 7.125 percent, 4-year, semiannual-pay bond trading at 102.347 percent of par (where par $1,000). The bond is first callable at 101 in two years, and first putable at 100 in two years. What is the bond's yield to first put? O A. 6.450% B. 2.932% OC. 4.225% D. 5.864%

An analyst observes a Widget & Co. 7.125 percent, 4-year, semiannual-pay bond trading at 102.347 percent of par (where par $1,000). The bond is first callable at 101 in two years, and first putable at 100 in two years. What is the bond's yield to first put? O A. 6.450% B. 2.932% OC. 4.225% D. 5.864%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 17PROB

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