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A(o) B.0%, 20-year bond has a par value of $1,000 and a call price of $1,005, (The bonds frst call date is in 5 years)

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A(o) B.0\%, 20-year bond has a par value of $1,000 and a call price of $1,005, (The bonds frst call date is in 5 years) Coupon payments are made semiarnualy (co use cerniarnual compounding where appropriate). a. Find the current yeld, YTM, and YTC on this itsue. given that it is currenty being priced in the market at 31,150 . Which of these 3 yeids is the highest? Which is the lowest? Which yleld would you iase to value this bond? Explain b. Repeat the 3 calculatione above, given that the bond is being priced at 5000 . Now which yleld is the highest Which is the lowest Which yeld would you use to value this bond? Explan. a. If the bond is priced at $1,150, the current yeid is y. (Reund to two decimal places.)

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