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Consider the Following Bond: Coupon Rate: 10% Maturity: 30 Years Par Value: $1000 First Par call in 10 years Only put date in five years
Consider the Following Bond:
Coupon Rate: 10% Maturity: 30 Years Par Value: $1000 First Par call in 10 years Only put date in five years and putable at par value
a) what is the yield to maturity? b) what is the yield to first par call? c) what is the yield to put? d) suppose that the bond can be called in 5 years at $1,050, what is the yield to first call?
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