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7.) Consider the following putable bond. Coupon rate = initial YTM = 5%. Term = 20 years. Issue date = 8/15/2016. Today is 2/15/2017. The

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7.) Consider the following putable bond. Coupon rate = initial YTM = 5%. Term = 20 years. Issue date = 8/15/2016. Today is 2/15/2017. The bond is putable on 8/15/2018 at a price = 100. Suppose today is 2/15/2017 and the price is 98-20. a.) What are the yield to maturity and the yield to the put date? b.) Which yield will be higher? YTM or YTP? Why

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