@Q

CFA Level I
#1

Burlington Corp. has a bond with the following relevant information: Par value $100 Maturity 4 years Coupon 6% semi-annual Market Price $104.21 Callable in 2 years at 101 Yield to worst for this bond is closest to: 4.11% 4.27% 4.69% 4.82%

#2

kJH, some more descriptive titles would help :slight_smile:

#3

B, 4.27% PV=-104.21, N=4, PMT=3, FV=101, CPT I/Y=2.1329, multiply by 2 = 4.2659~4.27%

#4

D: 4.82% N = 8, PV = -104.21, PMT = 3, FV = 100, CPT I/Y and multiply by 2

#5

map1 Wrote: ------------------------------------------------------- > B, 4.27% > > PV=-104.21, N=4, PMT=3, FV=101, CPT I/Y=2.1329, > multiply by 2 = 4.2659~4.27% This is the YTC not yield-to-worst. Yield to worst would be if they DID NOT call it…

#6

Isn’t yield to worst the yield to call?

#7

I think you’re right…

#8

4.27

#9

I said B - like Map… YTM is 4.82% YTC is 4.27%…I believe yield to worst would equal YTC in this case? KJH - what is the answer?

#10

YTW is generally the lowest of YTC or YTM, since YTC is lower, I thought B is the answer.

#11

map1 is 100% right, I do this every day, seems to be the only thing related to FI that i know around here. Check a Bloomberg computer…

#12

Would have gone better if my P/Y wasn’t on 12 though. I/Y does not = 25%! LOL

#13

I am showing 4.27 as worst being YTC, YTM at 4.82%. B