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Consider the following bond: Coupon rate = 11%, paid semi-annually Maturity = 18 years Par value = $1,000 First call date - 13 years, callable

Consider the following bond: Coupon rate = 11%, paid semi-annually Maturity = 18 years Par value = $1,000 First call date - 13 years, callable at par First put date - 5 years, putable at par Suppose that the market price for this bond is $1,169. Assuming semi-annual com- pounding: (a) Show that the yield to maturity for this bond is 9.077%. (b) Show that the yield to first call is 8.793%. (c) Show that the yield to first put is 6.942%. (d) If these are the only call and put dates, what is the yield to worst? Note: In (a) - (c) show, dont just state

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