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A firm's bonds have a maturity of 10 years with a $1000 face value, have an 6% semiannual coupon, are callable in 5 years at
A firm's bonds have a maturity of 10 years with a $1000 face value, have an 6% semiannual coupon, are callable in 5 years at $1050, and currently sell at a price of $1100.
question 1: What are their nominal yield to maturity?
question 2: what is their nominal yield to call?
question 3: What return should investors expect to earn on these bonds?
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