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Assume that Kendal Corp. has an outstanding bond issue with a par value of $ 1 , 0 0 0 and a current market price
Assume that Kendal Corp. has an outstanding bond issue with a par value of $ and a current market price of $ per bond. The bond has nine years remaining and a coupon rate of percent. Use Excel to answer this question. Enter your answer as a percent rounded to decimal places.
a Find the current yield to maturity for the Kendal Corp. bond. Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
b If the bond trades at a yield spread of percent above comparable US Treasury notes, what must the current yield on Treasury notes beDo not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
c If the Kendal bond has a makewhole call premium of basis points above the US Treasury rate, what is the makewhole call premium? Do not round intermediate calculations. Enter the makewhole yield answer as a percent rounded to decimal places. Enter the makewhole price answer in dollars rounded to decimal places.
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