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1 . Xiamen Corporation has bonds outstanding with a RM 1 0 0 0 par value and 1 5 years left to maturity. They have
Xiamen Corporation has bonds outstanding with a RM par value and years left to maturity. They have an annual coupon payment, and their current price is RM The bond may be called in years at RM
aCalculate the bonds yield to maturity.
bCalculate the bonds yield to call.
cWhich yield might investors expect to earn on these bonds? Briefly explain why.
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