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Bond Yields and Rates of Return A 10-year semiannual 12% coupon bond with a par value of $1,000 may be called in 4 years at
Bond Yields and Rates of Return
A 10-year semiannual 12% coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,060. The bond sells for $1,100. (Assume the bond has just been issued.)
a.) What is the Yield to Maturity?
b.) What is the bonds current yield?
c.) What is the bonds capital gain or loss yield?
d.) What is the bonds yield to call?
(Please show work and financial calculator inputs, not excel)
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