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(10 points) RHW: Bond Pricing and Returns /1. A 12%, 10 year bond currently sells for $1,250. Compute the bond's YTM, and Current Yield. J2.

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(10 points) RHW: Bond Pricing and Returns /1. A 12%, 10 year bond currently sells for $1,250. Compute the bond's YTM, and Current Yield. J2. If the bond's first callable date is 5 years from today, and the Call Premium is $150, what is the bond's Yield to Call (YTC) eX4 P ! Go back to the bond described in Question 1 : Compute the bond's price corresponding to YTM of 6%, 8%, 10%, 12%, and 14%. 3, Assume that you buy the bond (in Question 1) at the market price of $1,250. After you buy the bond today, the YTM changes to 10.8% and stays there. You hold the bond for 1 year and then sell it (when the YTM is i 0.8%, and the bond has 9 years to nnaturity) Compute the Holding Period Return (HPR) for the 1 year holding period. What are the Coupon Yield and Capital Gains Yield? 4. 5, 5. Assume that you buy the bond (in Question I) today at the market price of $1,250. After you buy the bond, the YTM changes to 10.8%. You hold the bond for 5 years and then sell it (when the YTM is 10.8% , and the bond has 5 years to maturity corresponding to this investment. What is the Annualized Rate of Return (ARR)

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