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A 1 0 - year, 1 2 % coupon bond has a par value of $ 1 , 0 0 0 and may be called
A year, coupon bond has a par value of $ and may be called in years at a premium. The bond sells for $ now. Assume that the bond has just been issued.
a Calculate the bonds yield to maturity YTM
b Calculate the bonds current yield CY
c Calculate the bonds expected capital gains or loss yield CGY
d Calculate the bonds yield to call YTC
Wherever appropriate, show the abbreviated time line TL and use two methods: Numerical Solution NS; show the expressionequation only and Financial Calculator Solution FCS Use
and to make time lines.
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