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Cullumber Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 10.435 percent and a yield to maturity of
Cullumber Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 10.435 percent and a yield to maturity of 6.2 percent. Assume face value is $1,000. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ eTextbook and Media Attempts: unlimite roblem 8.30(b) If the bonds can be called in five years at a premium of 12.5 percent over par value, what is the investor's realized yield? (Round answer to 3 decimal places, e.g. 15.255\%.) %
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