I’m not able to get answers, please someone share inputs to be entered in calculator
For #3, it’s just 4/91 - 1/102, so the corporate has a current yield 340 bps over the sovereign.
For #4, the first call date is 1 year from now. I don’t have my calculator on me, but your inputs would be P/Y=C/Y=2, 2 N, -91 PV, 2 PMT, 101.25 FV, CPT I
hey @breadmaker thanks for replying. I just had a doubt, since while calculating Yield to First Call we take earliest year in which call option is enabled, isn’t N is that case be 1 instead of 2 as you mentioned above. Please give the clarification why N is 2 instead of 1, while Q also mentions bond is callable 1-2 years after settlement, please see the picture provided in the above post.
Thanks again
The calculator wants you to set N as the total number of payments. In this case, it is the coupon 6 months from now and the coupon + call price paid 12 months from now.
When I compute the interest rate using the inputs above, I get 15.24579%
Thanks,I didn’t saw that the bond is semi annual and started wondering why they took N as 2 years when they are taking N as 2 semi annuals.
Thanks for such a quick and prompt replies.