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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

1.Xiamen Corporation has bonds outstanding with a RM1000 par value and 15 years left to maturity. They have an 12% annual coupon payment, and their current price is RM1180. The bond may be called in 6 years at RM1100.
a)Calculate the bonds yield to maturity.
b)Calculate the bonds yield to call.
c)Which yield might investors expect to earn on these bonds? Briefly explain why.

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