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Consider the case of Dermed inc: Demed Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds
Consider the case of Dermed inc: Demed Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and thelf current market price is $1,130,35. However, Demed Inc. may call the bonds in eight years at a call price of $1,060. What are the Yrm and the veld to call (VTC) on Demed Incis bonds? If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Demed tnci's bonds? 8 years 18 years 5 years 10 years If Demed fnci. issued new bonds today the coupon rate must be for the bonds have to be issued at par
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