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A bond has just been issued. The bond is currently selling for $1220. The bond will mature in 12 years. The bonds annual coupon rate
A bond has just been issued. The bond is currently selling for $1220. The bond will mature in 12 years. The bonds annual coupon rate is 7.50% and the face value of the bond is $1,000. Coupons will be paid semi-annually. The bond is callable in 7 years and the call price is $1150. a. Compute the bonds annual yield to call. b. Compute the bonds current yield. c. Compute the bonds annual yield to maturity.
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