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A compary is more I kely to call its bonds if they are able to replace their current high-coupon debt with fess expensive financing. A

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A compary is more I kely to call its bonds if they are able to replace their current high-coupon debt with fess expensive financing. A bond is more likely to be calied if its price is. par-because this means that the going market interest rate is less than its coupon rate. Quantitative Problem: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8.4% with semiannual payments of $42, and a par value of $1,000, The price of each bond in the issue is $1,240,00, The bond issue is calfable in 5 years at a call price of $1,084 What is the bond's current yleld? Round your answer to two decimal places. Do not round intermediate colcuiations. What is the bond's nominal annual yleld to maturity (YTM)? Round your answer to two decirnal places. Do not round intermediate caiculations. of What is the bond's nominal annual yieid to call (YTC)? Round your answer to two decimal places, Do not round intermediate calculations. Assuming interest rates femain at current leveis, will the bond issue be calied? The firm call the bond

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