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Bond yields One year ago Clark Company issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be
Bond yields One year ago Clark Company 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 now sells for $1, 080. What is the bond's nominal yield to maturity? What is the bond's nominal yield to call? Would an investor be more likely to earn the YTM or the YTC? Is this yield affected by whether the bond is likely to be called? If the bond is called, the current yield and the capital gains yield will both be different. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be different. If the bond is called, the current yield will remain the same but the capital gains yield will be different. If the bond is called, the current yield and the capital gains yield will remain the same. If the bond is called, the capital gains yield will remain the same but the current yield will be different. What is the expected capital gains (or loss) yield for the coming year
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