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Coupon payments are fixed, but the percentage retum that investors-recelve varies based on market coniditions. This percentage return is referred to as the bond's yield.

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Coupon payments are fixed, but the percentage retum that investors-recelve varies based on market coniditions. This percentage return is referred to as the bond's yield. Vield to maturity (YTM) is the rate of return expected from a bond held untilis maturity date. Howeses, the YiM equals the expected rate of return under certoin assumptions. Which of the following is one of those assumptions? The bend has an easly redemption feature. The bond will not be called. Consider the case of Biancie. Inci: Blanche inc. has 9% annuat coipon bonds that are callable and have 18 years left until maturity. The bends have a par value of $1,000, and their current market price is $1,190.35. However, Banche inc. may call the bonds in elght years at a call pice of $1,060. What are the YTM and the yleid to Call (YTC) on Blanche lncis bonds? If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Blanche incis bonds? 13 years 10 years 8 years 5. years If Blanche Inc. Issued new bonds todoy, what coupon rate must the bonds have to be issued at par? Blanche Inc. has 9% annual coupon bonds that are callable and have 18 years left current market price is $1,190.35. However, Blanche Inc. may call the bonds in eig call (YTC) on Blanche Inc.'s bonds? YTC 5 years If Blanche Inc. issued new bonds today, what coupon rate must the hondsh Blanche Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturit) current market price is $1,190.35. However, Blanche Inc. may call the bonds in eight years at a call (YTC) on Blanche Inc.'s bonds? Value YTM If interest 8.82% expected to remain constant, what is the best estimate of the remaining life I YTC.47\% 7.93% 5 years If Blanche Inc. Issued new bonds today, what coupon rate must the bonds have to be issued at par the case of Blanche Inc: 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 their narket price is $1,190.35. However, Blanche Inc. may call the bonds in elght years at a call price of $1,060. What are the YTM and the yield to ) an Blanche Incis bonds? st rates are expected to remain constant, what is the best estimate of the remaining life left for Blanche fnc's bonds? 13 years 10 years 8 years 5 years \begin{tabular}{l} 7.93% \\ 8.82% \\ \hline 7.09% \\ \hline 8.88% \\ \hline \end{tabular} he Inc. issued new bonds today, what coupon rate must the bonds have to be is 5 ued at par

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