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Bond Corp has just issued a callable (at par) 10-year, 12% coupon bond with quarterly coupon payments. The bond can be called at par in
Bond Corp has just issued a callable (at par) 10-year, 12% coupon bond with quarterly coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $105 and a face value of $100. DE What is the bond's yield to maturity? O A none of the other choice is correct OB. 12% O c. 2.79% OD. 1.70% What is its yield to call? OA. 12% OB. 2.79% O c. none of the other choice is correct OD. 1.70% What is the price of the bond if the yield to maturity increases to 5% (assume you hold the bond until maturity)? O A $65.58 OB. $92.91 O c. none of the other choices is correct OD. $100
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