A 10-year, 8 % semiannual coupon bond with a par value of $1,000 may be called in
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Question:
A 10-year, 8 % semiannual coupon bond with a par value of $1,000 may be called in 7 years, at a call price of $1,100. The bond sells for $1,500. (Assume the bond has just been issued).
- What is the bond's yields to maturity?
- What is the bond's current yield?
- What is the bond's capital gain or loss yield in the first year?
- What is the bond's yield to call
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