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2 CF1 - 10p Question Hennes & Mauritz have just issued a ten-year callable, 8% coupon bond with annual coupon payments. The bond can be

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2 CF1 - 10p Question Hennes & Mauritz have just issued a ten-year callable, 8% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime therafter on a coupon payment date. It has a price of $101 and a face value of S100 % (answer in percentage form with two decimals, for example a. What is the bond's yield to call? 4.54 and not 0,0454) b. What is the bond's yield to maturity? % (answer in percentage form with two decimals; for example 4, 54 and not 0.0454), Hint use a financial calculator, Exce's RATE formula or trial-and-error by hand (or with excel) within the interval 6%-8% c What is the Yield to Call f instead we suppose that the coupon payments are made semiannually and the Coupon rate is 8%. The Yield to Call stated in yearly format is then % (answer in percentage form with two decimals, for example 4,54 and not 0.0454). Hint use a financial calculator, Excel's RATE formula or trial-and- error by hand (or with excel) within the interval 6% 8% of the yearly rate

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