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1. A 9.7%, 17-year callable bond has a call premium of $85 and a deferred call provision of 4 years and is currently quoted at

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1. A 9.7%, 17-year callable bond has a call premium of $85 and a deferred call provision of 4 years and is currently quoted at 83.07. Calculate the yield to maturity and yield to call on this bond. 2. You buy a zero-coupon bond with a term of 9 years and currently quoted at 46.25. What is its yield to maturity? If interest rates go to 7% in one year and you sell your bond at that time, what would be your HPR

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