The Henderson Companys bonds currently sell for $1,275. They pay a $120 annual coupon, have a 20-year

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The Henderson Company’s bonds currently sell for $1,275. They pay a $120 annual coupon, have a 20-year maturity, and a par value of $1,000, but they can be called in 5 years at $1,120. What are their YTM and their YTC, and if the yield curve remained flat which rate would investors expect to earn?

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