Keenan Industries has a bond outstanding with 15 years to maturity, a 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be...


Keenan Industries has a bond outstanding with 15 years to maturity, a 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,150. What is the bond's nominal yield to call?


A. 8.54%


B. 6.61%


C. 6.75%


D. 6.54%


E. 6.89%



Jun 06, 2022
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