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1} As an investor, you are considering buying a bond that pays 7% semiannual coupon. This bond has a $10,000 face value and will mature

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1} As an investor, you are considering buying a bond that pays 7% semiannual coupon. This bond has a $10,000 face value and will mature in 25 years. If your required rate of return is 5.8% for bonds in this risk class, what is the highest price you would be willing to pay? 2} On Aug 15'", 2016 you are offered the following bond: 0 Face value $250 (par value} 0 Coupon rate 7% 0 Coupon frequency semiannual (8/15 8: 2/15) 0 Maturity date Aug 15, 2058 0 First call date February 15, 202? 0 Call premium 3% of the face value 0 Bond current market price $300 a) Calculate the yield to maturity. b) What is the current yield c} Calculate Yield to Call

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