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At the end it asks if you should or should not call the bond. this confused me as well as the questions Quantitative Problem: Ace
At the end it asks if you should or should not call the bond. this confused me as well as the questions
Quantitative Problem: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 9% with semiannual payments of $45, and a par value of $1,000 The price of each bond in the issue is $1,180.00. The bond issue is callable in 5 years at a call price of $1,090 What is the bond's current yield? Round your answer to two decimal places. Do not round intermediate calculations What is the bond's nominal annual yield to maturity (YTM)? Round your answer to two decimal places. Do not round intermediate calculations What is the bond's nominal annual yield to call (YTC)? Round your answer to two decimal places. Do not round intermediate calculations Assuming interest rates remain at current levels, will the bond issue be called? The firm I - Select :I call the bondStep by Step Solution
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