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Consider the following bond: Coupon rate = 1 1 % Maturity = 1 8 years Par value = $ 1 , 0 0 0 First

Consider the following bond:
Coupon rate =11%
Maturity =18 years
Par value = $1,000
First par call in 13 years
Only put date in five years and puttable at par value
Suppose that the market price for this bond $1,169.
(a) Show that the yield to maturity for this bond is 9.077% by using the formula.
(b) Show that the yield to first par call is 8.793%.
(c) Show that the yield to put is 6.942%.
(d) Suppose that the call schedule for this bond is as follows:
Can be called in eight years at $1,055
Can be called in 13 years at $1,000
And suppose this bond can only be put in five years and assume that the yield to eight yearscall is 8.535%. What is the yield to worst for this bond?

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