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20. Problem 7.11 (hond Yields) eBook Problem Walk-Through t year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000.
20. Problem 7.11 (hond Yields) eBook Problem Walk-Through t year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently the bond can be celed in 6 years at a price of S1 065 and it sells for st 23 a. What is the bond's nominal yield to maturity? Do not round intermediate caloulations. Round your answer to two decimal places. What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places Would an investor be more lkely to earn the YTM or the YTC b. Whet is the current yileld? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Round your answer to two decimal places is this yield affected by whether the bond is likely to be called l. I' the bond is called, the captal gens yield wil remain the same but the current yled wi" be different. 11 if the bond is caliled, the current yield and the capital gains yield will both be differet 111. If the hond is called, the current yeld and the captal gains yield will remain the same but the ceupon rate will be different TV. If the bond is celled, the current vield will remain the same but the capital gains yield will be different V. if the bond is cafed, the current yield and the capital gains yield wil remain the same what-the expected capital gens (or iess) yield for the coming year? use amounts aiciated n ate-regure ents for taleulation, ,moured hepat-vai, taide indated by a minus sign. Round your answer to two decimal places
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