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Excel file of question Four years ago Southside Hospital sold 20 year 6% annual coupon bonds at par. The bonds had a $1,000 par (face)
Excel file of question
Four years ago Southside Hospital sold 20 year 6% annual coupon bonds at par. | |||||||
The bonds had a $1,000 par (face) value and today sell for $950. The market rate | |||||||
for the bonds does not change during year 5 (from today until the end of the year). | |||||||
a. What is yield to maturity on the bonds? (2) | |||||||
b. What was the current yield and the capital gains yield for the year (year 5)? (5) | |||||||
c. The bonds are callable in 6 years at a 2% premium. What is the Yield to Call? (3) |
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