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Exactly 2 years ago, the Winchester Corporation Issued a 10-year bond with a 9% annual coupon and a $1,000 par value. The bond also included
Exactly 2 years ago, the Winchester Corporation Issued a 10-year bond with a 9% annual coupon and a $1,000 par value. The bond also included a call feature whereby the bond could be called after 5 years at a price of 106% of its par value. The bond's "current yield" is 8.25% (Hint: as discussed in class, the term "current yield" is a specific measure that is distinct from "yield to maturity".) 1. What is the bond's price today? 2. What is the bond's yield to maturity (YTM) today? 3. What is the bond's yield to call (YTC) today? (Note: For each q eestion, please show detailed explanations as to how you proceed to your answer along with detailed calculations)
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