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a. What is the yield of the following bond if interest (coupon) is paid semiannually? (Round to two decimal places.) Years to Maturity Yield to

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a. What is the yield of the following bond if interest (coupon) is paid semiannually? (Round to two decimal places.) Years to Maturity Yield to Maturity Coupon Rate Price Par Value $5,000.00 10% 25 % $4,570.00 Callable bond. Corso Books has just sold a callable bond. It is a thirty-year monthly bond with an annual coupon rate of 9% and $5,000 par value. The issuer, however, can call the bond starting at the end of 12 years. If the yield to call on this bond is 12% and the call requires Corso Books to pay one year of additional interest at the call (12 coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date? What is the bond price if priced with the assumption that the call will be on the first available call date? (Round to the nearest cent.) a. What is the yield of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Years to Maturity Coupon Rate Yield to Maturity % Par Value $5,000.00 Price 8% 25 $4,090.00

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