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a firms bonds A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 8% semiannual coupon, are calable in
a firms bonds
A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 8% semiannual coupon, are calable in 4 years at $1,049.06, and currently sellario $1,095.69 What are their nominal yield to maturity and their nominal yield to call? Do not round Intermediate calculations, Hound your answers to two decimal places. YTM YTC: What return should investors expect to eam on these bonds? 1. Investors would expect the bonds to be called and to earn the YC because the YTC is greater than the YTM II. Inwestors would not expect the bonds to be called and to eam the YTM Because the YTM is greater than the YTC III. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC IV. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM Son Step by Step Solution
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