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Carla Vista Corp. has seven-year bonds outstanding. The bonds pay a coupon rate of 8.375 percent semiannually and are currently worth $1,061.49. The bonds can
Carla Vista Corp. has seven-year bonds outstanding. The bonds pay a coupon rate of 8.375 percent semiannually and are currently worth $1,061.49. The bonds can be called in three years at a price of $1,075. a.) What is the yield to maturity of these bonds? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 2 decimal places, e.g. 15.25%.) b.) What is the realized yield on the bonds if they are called? (Round answers to 2 decimal places, e.g. 15.25%.) c.) If you plan to invest in one of these bonds today, what is the expected yield on the investment? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 2 decimal places
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