7. Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semiannual coupon

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7. Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semiannual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $99.

a. What is the bond’s yield to maturity?

b. What is its yield to call?

c. What is its yield to worst?

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Fundamentals Of Corporate Finance

ISBN: 9781292018409

3rd Global Edition

Authors: Berk, Peter DeMarzo, Jarrad Harford

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