A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000. The bond may be called after 10 years at a call price of $1,050. The bond has a nominal yield to call of 6.5 percent. What is the bond’s yield to maturity, stated on a nominal, or annual basis?

A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000. The bond may be called after 10 years at a call price of $1,050. The bond has a nominal yield to call of 6.5 percent. What is the bond’s yield to maturity, stated on a nominal, or annual basis?

A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000.  The bond may be called after 10 years at a call price of $1,050.  The bond has a nominal yield to call of 6.5 percent.  What is the bond’s yield to maturity, stated on a nominal, or annual basis?





a. 5.97%
b. 6.30%
c. 6.75%
d. 6.95%
e. 7.10%










Answer: D


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