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For this Assignment, review the information presented in Problem 7-18 on page 267 of your course text. You will utilize the information in this week's

For this Assignment, review the information presented in Problem 7-18 on page 267 of your course text. You will utilize the information in this week's readings and media to make a recommendation with regard to when to call a bond.

  • Prepare a spreadsheet using Excel or a similar program in which you compute the items listed in parts a, b, and d. Be sure to compute the Yield-to-Maturity (YTM) and Yield-to-Call (YTC) for each of years 5, 6, 7, 8, and 9.
  • Utilizing Word, prepare a written report to your finance director:
    • Include a detailed explanation of the conclusion you reached concerning whether or not to call the bond before maturity.
    • If your recommendation is to call the bond early, explain when to call the bond and your rationale.
    • Discuss the advantages and disadvantages of using a long-term loan instead of a bond.

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