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Assume that you purchased an 8%, 20-year, 1,000 par, semiannual payment bond priced at 1,012.50 when it has 12 years remaining until maturity. Compute: a.

Assume that you purchased an 8%, 20-year, 1,000 par, semiannual payment

bond priced at 1,012.50 when it has 12 years remaining until maturity.

Compute:

a. Its promised yield to maturity

b. Its yield to call if the bond is callable in three years with an 8 percent

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