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A(n) 9.5%, 20-year bond has a par value of $1,000 and a call price of $1,125. (The bonds first call date is in 5 years)

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A(n) 9.5\%, 20-year bond has a par value of $1,000 and a call price of $1,125. (The bonds first call date is in 5 years) Coupon payments are made semiannualy (so use semiannud compounding where appropriatel a. Find the current yeld, YTM, and YTC on this isfue, given trat it is currently being priced in the maket at $1,250. Which of those 3 yelds is the highest? Which is the iowest? Which yeld would you use to value this bond? Explain. b. Repeat the 3 calculations above, given that the bond is being priced at 3900 . Now which yeld is the highest? Which is the lowest? Which yeld would you use to valve this bond? Explan. a. If the bond is prited at $1,250, the current yeld is W. (Round to wo decimal places.) A(n) 9.5\%, 20-year bond has a par value of $1,000 and a call price of $1,125. (The bonds first call date is in 5 years) Coupon payments are made semiannualy (so use semiannud compounding where appropriatel a. Find the current yeld, YTM, and YTC on this isfue, given trat it is currently being priced in the maket at $1,250. Which of those 3 yelds is the highest? Which is the iowest? Which yeld would you use to value this bond? Explain. b. Repeat the 3 calculations above, given that the bond is being priced at 3900 . Now which yeld is the highest? Which is the lowest? Which yeld would you use to valve this bond? Explan. a. If the bond is prited at $1,250, the current yeld is W. (Round to wo decimal places.)

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