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A 15-year, 6% semiannual coupon bond with a par value of $1,000 may be called in 7 years at a call price of $1,090. The

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A 15-year, 6% semiannual coupon bond with a par value of $1,000 may be called in 7 years at a call price of $1,090. The bond sells for $1,100. INPUT VALUES: $1,000 1 mark Par value Years to maturity = Years to call Selling Price = Coupon Rate = Payment = 1 mark a. What is the bond's yield to maturity? 1 mark b. What is the bond's current yield? 2 marks c. What is the bond's yield to call? d. How would the price of the bond be affected by a change in the going market interest rates? 2 marks A 15-year, 6% semiannual coupon bond with a par value of $1,000 may be called in 7 years at a call price of $1,090. The bond sells for $1,100. INPUT VALUES: $1,000 1 mark Par value Years to maturity = Years to call Selling Price = Coupon Rate = Payment = 1 mark a. What is the bond's yield to maturity? 1 mark b. What is the bond's current yield? 2 marks c. What is the bond's yield to call? d. How would the price of the bond be affected by a change in the going market interest rates? 2 marks

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