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7 sts Stetson Corporation just issued a 20-year, 9.75% annual coupon bond, with a face value of $1000. Similar bonds in the market has
7 sts Stetson Corporation just issued a 20-year, 9.75% annual coupon bond, with a face value of $1000. Similar bonds in the market has a yield to maturity of 11%. The bond can be called in 6 years at a call price of $1,090. a What price should you pay for the bonds today? (2 points) b. What is the current yield on the bond? (1 points). c. What is the yield to call on the bond? (2 points). 2. After 4 years. Interest rates are expected to fall such that the yield to maturity on the bond will decline by 1.2% What will the price of the bond in 4 years? (2 points). You may use the calculator and type in your answers or use the excel sheet provided below. Please provide the steps below either way if you want any Partial credit! Use either of these spreadsheet links. The one with data' includes the question and the other is blank. Show me your work on either. Click to open: Click to open: The spreadsheet links above have been provided to allow you to show your work. Once you are through, select the button "Click here to save your work, users receive the message below after saving. LockDown Browser (2.0.0.01) MacBook
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