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5 June, 17:57

Atlantis Fisheries issues zero coupon bonds on the market at a price of $489 per bond. These are callable in 6 years at a call price of $580. Using semiannual compounding, what is the yield to call for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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  1. 5 June, 19:46
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    the yield to call for these bonds is 5.7705 %

    Explanation:

    In this question, we are required to find the yield to call on the bonds

    The Information we have is as follows:

    PV = 489

    PMT = 0

    FV = $580

    N = 6

    P/YR = 2 (semiannual compounding)

    YTC = ?

    Using a Financial Calculator and inputting the appropriate values as above, the yield to call is 5.7705 %
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