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BOND YIELDS Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called
BOND YIELDS Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065 and it sells for $1,200. a. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. 9.82 *% What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places. 9.39 U96 Would an investor be more likely to earn the YTM or the YTC? Since the coupon rate on the bond has declined, the bond is not likely to be called Since the YTM is above the YTC, the bond is likely to be called. Since the YTC is above the YTM, the bond is likely to be called. Since the YTM is above the YTC, the bond is not likely to be called. Since the YTC is above the YTM, the bond is not likely to be called. i. ent yield and to Table 7.1.) Round your answer to two decimal places
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