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Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10 2. (10 points) Compute the following yields: a) the
Bond 1 | ||
Coupon rate | 6% | |
Annual coupon frequency | 2 | |
Par | $1,000 | |
Time to maturity (years) | 10 |
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2. (10 points) Compute the following yields:
a) the yield to maturity for Bond 1, above, if the current bond price is $875.
b) the yield to call for Bond 1 if its current price is $1050 and it is callable in 4 years at a value of par plus one years coupon interest.
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