What is the yield to call

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It is now January 1, 2009, and you are considering the purchase of an outstanding bond that was issued on January 1, 2007. It has a 9% annual coupon and had a 20-year original maturity. (It matures on December 31, 2026.) There was 5 years of call protection (until December 31, 2011), after which time it can be called at 109 (that is, at 109% of par, or $1,090). Interest rates have declined since it was issued, and it is now selling at 114.12% of par, or $1,141.2


What is the yield to call? Round your answer to two decimal places.

 

Reference no: EM13302399

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