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Compute the Yield to Call (YTC) of a 9% coupon bond, with a $1,000 face value maturing 20 years from now, but callable in 10
Compute the Yield to Call (YTC) of a 9% coupon bond, with a $1,000 face value maturing 20 years from now, but callable in 10 years with a call price of $1,300. Assume the market price of the bond to be $750 and that the coupons are:
a) paid annually.
b) paid semi-annually.
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