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Posted on Jul 13, 2024

Beaker Chemical Company has 4.20% coupon bonds on the market that have 7 years left to maturity. The yield-to-maturity (YTM) on these bonds is 3.72%.

a) Are these premium or discount bonds?

b) What is the current bond price?

c) What is the current yield?

d) If these bonds are callable in 5 years with a $50 call premium, what is the yield-to-call (YTC)?

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