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Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a new bond with

Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a new bond with 20 years to maturity. It is a $1,000 par value bond paying 10 percent interest annually. The market price of the bond is $950.

The bond may be called any time after 3 years and the call premium is $200.

Find the yield-to-call.

A.

9.52%

B.

10.22%

C.

11.75%

D.

12.86%

E.

13.64%

image text in transcribed

Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity; it is a $1,000 par value bond paying 8 percent interest semiannually. The market price of the bond is $850.

Based on this information if you already own the bond, then you will sell the bond.

True

False

Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a new bond with 20 years to maturity. It is a $1,000 par value bond paying 10 percent interest annually. The market price of the bond is $950. The bond may be called any time after 3 years and the call premium is $200. Find the yield-to-call. O A. 9.52% O B.10.22% O C. 11.75% OD. 12.86% OE. 13.64% QUESTION 4 10 points Save Answer Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity, it is a $1.000 par value bond paying 8 percent interost semiannually. The market price of the bond is $850 Using this information. If you do not already own the bond, you will buy the bond True Falso Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a new bond with 20 years to maturity. It is a $1,000 par value bond paying 10 percent interest annually. The market price of the bond is $950. The bond may be called any time after 3 years and the call premium is $200. Find the yield-to-call. O A. 9.52% O B.10.22% O C. 11.75% OD. 12.86% OE. 13.64% QUESTION 4 10 points Save Answer Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity, it is a $1.000 par value bond paying 8 percent interost semiannually. The market price of the bond is $850 Using this information. If you do not already own the bond, you will buy the bond True Falso

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