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Assume that you purchased a 9% coupon, 10-year, $1000 par, semi-annual payment bond with a current price of $915. Calculate its: a) Yield to maturity
Assume that you purchased a 9% coupon, 10-year, $1000 par, semi-annual payment bond with a
current price of $915. Calculate its:
a) Yield to maturity b) Yield to call if the bond is callable in 3-years at a 5% premium. [2 marks]
c) Yield to put if the bond is puttable in 3-years at a 5% discount. [2 marks]
d) Compare YTC and YTP and explain why YTC is generally greater than YTP?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
