Question
2) It is now January 1, 2022, and you are considering the purchase of an outstanding bond that was issued on January 1, 2020. It
2) It is now January 1, 2022, and you are considering the purchase of an outstanding bond that was issued on January 1, 2020. It has a 9% annual coupon and a 30-year original maturity. There are 5 years of call protection, after which time it can be called at 108 - 108% of par. Interest rates have declined since it was issued, and it is now selling at 115.12% of par. What is the yield to maturity? What is the yield to call? Round your final answers to 2 decimal places.
Answer Choices:
A) 8.47%; 7.55%
B) 7.70%; 8.27%
C) 7.67%; 8.24%
D) 7.70%; 8.24%
E) 7.67%; 8.27%
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