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9.0 - Yield to Call or Yield to Maturity. Use Excel to answer the following problem. Please show all Excel commands / arguments. Gilligan Co's

9.0 - Yield to Call or Yield to Maturity. Use Excel to answer the following problem. Please show all Excel commands / arguments.

Gilligan Co's bonds currently sell for $1,010. They have a 6.75% annual coupon rate and a 15-year maturity, and are callable in 6 years at $1,067.50. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. Under these conditions, is Gilligan likely to call in the bonds early or let them mature in 15 years? What is the investor's YTC and what is their YTM?

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