A 14 year $1000 face balue corporate bond has an 8% semiannual coupon and sells for $1075. The bond may be called in 5 years at a call price of $1050. What is the bond's yield to call?
I did FV=1000, PV=1050, PMT=80, N=14, and solved for I/Y and got 7.14. The correct answer is 7.05% I don't understand what I am doing incorrectly.
I did FV=1000, PV=1050, PMT=80, N=14, and solved for I/Y and got 7.14. The correct answer is 7.05% I don't understand what I am doing incorrectly.