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BFC has a bond outstanding with 10 years to maturity, an 4.00% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a
BFC has a bond outstanding with 10 years to maturity, an 4.00% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 3.250% nominal yield to maturity, but it can be called in 6 years at a price of $1,075.
a) What is the bonds current Price ?
b) What is the nominal yield to call?
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