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2. An 9-year, 6 percent (coupon rate) semiannual coupon bond, with a par value of $1,000, may be called in 5 years at a
2. An 9-year, 6 percent (coupon rate) semiannual coupon bond, with a par value of $1,000, may be called in 5 years at a call price of $1,060. The bond sells for $990. (Assume that the bond has just been issued.) a. What is the bond's yield to maturity? b. What is the bond's current yield? c. What is the bond's yield to call?
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Financial Accounting Theory
Authors: William R. Scott
7th edition
132984660, 978-0132984669
