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2) You currently own a 15 year bond with a 6.25% coupon rate. The current YTM for the bond is 5.45%. The bond has two
2) You currently own a 15 year bond with a 6.25% coupon rate. The current YTM for the bond is 5.45%. The bond has two different call provisions. The first is a call provision in two years for a face value of $1060 per bond. The second is in eight years for a face value of $1035 per bond.
a. What is the YTC if the bond is called in two years? 6 points
b. What is the YTC if the bond is called in eight years? 6 points
c. Given this information, what is the YTW for this bond at present? 3 points
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