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Coupon payments are fixed, but the percentage return that imvestors receive varies based on market conditions. This percentage return is referres as the bond's vield.

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Coupon payments are fixed, but the percentage return that imvestors receive varies based on market conditions. This percentage return is referres as the bond's vield. Yield to mafurity (YTM) is the nate of return expected from a bond held untal its maturity date. However, the YIM equals the expected rate of retur under certain assumptions. Which of the following is one of those assumptions? The bond is callable. The probability of default is zero. Consider the case of Fades Corp.: Eades corp. has 9%6 annual coupon bonds that are callable and have-18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,100,35. Howevec, Eades Corp. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yie call (rtcic) on Eades Corpis bonds? If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Eades Corp.'s bonds? 16 year 13 rears 5 vear 8 year If Fades Corp, issued new bonds today, what coupon rate must the bonds have to be issued at par

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