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A $1,000 par value bond has a 15-year maturity and sells for $1,250. It pays a $120 annual coupon, but can be called in 5
A $1,000 par value bond has a 15-year maturity and sells for $1,250. It pays a $120 annual coupon, but can be called in 5 years at $1,050. What is the difference between this bond's YTM and its YTC? Select one: O a. 2.11% O b. 2.32% O c. 2.55% O d. 2.80% O e. 3.09%
A $1,000 par value bond has a 15-year maturity and sells for $1,250. It pays a $120 annual coupon, but can be called in 5 years at $1,050. What is the difference between this bond's YTM and its YTC? Select one: O a. 2.11% O b. 2.32% O c. 2.55% O d. 2.80% O e. 3.09%
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