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FINC 3132 Problem: Today you bought a semiannual bond from Solo-tech Company and the bond will mature in 10 years from today The bond was

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FINC 3132 Problem: Today you bought a semiannual bond from Solo-tech Company and the bond will mature in 10 years from today The bond was initially a 15-year bond and included a provision that permits the company, if desired to call the bond 10 years after the initial issuing date for 104 percent of face value. The bond pays a 7.5% annual coupon rate on a face value of $1,000 a) For what price would the bond sell today of similar bonds with similar risk (market rate) are issued today with 10% annual coupon b) For what price would the bond sell in one year assuming the market rate does not change. c) Calculate the current yield using the bond price under a) d) Assume the bond sells today for $844.22, calculate the YTM? c) Assume the bond sells today for $844.22, calculate the yield to call if the bond gets called in 5 years

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