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A corporate bond pays interest twice a year and has 18 years to maturity, a face value of $1,000 and a coupon rate of 5.6%.
A corporate bond pays interest twice a year and has 18 years to maturity, a face value of $1,000 and a coupon rate of 5.6%. The bond's current price is $1,342.9. It is callable starting 12 years from now (years to call) at a call price of $1,079. Part 1 (1) Attempt 3/5 for 10 pts. What is the bond's (annualized) yield to maturity? Part 2 (7) What is the bond's (annualized) yield to call? Part 3 Attempt 1/5 for 10 pts. If you buy the bond today and hold it as long as possible, which rate of return can you expect to earn? The yield to call (YTC) The yield to maturity (YTM)
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