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A firms bonds have a maturity of 10 years with a $1,000 face value, have an 9% semiannual coupon, are callable in 3 years at
A firms bonds have a maturity of 10 years with a $1,000 face value, have an 9% semiannual coupon, are callable in 3 years at $1,255, and currently sell at a price of $1,107.09. What are their nominal yield to maturity and their nominal yield to call? What return should investors expect to earn on these bonds?
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