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Four years ago Messy House Painting issued a 20- year bond with a $ 1,000 maturity value and a 4 percent coupon rate of interest.
Four years ago Messy House Painting issued a 20- year bond with a $ 1,000 maturity value and a 4 percent coupon rate of interest. Interest is paid semiannually. the bond is currently selling for $714. (a) What is the boud's yield of maturity? (b) if the bond can be called in three years for a redemption price of $ 1,016, what is the bond's yield call?
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