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Four years ago Messy House Painting issued a 20-year bond with a $1000 maturity value and a 4% coupon rate of interest. Interest is paid
Four years ago Messy House Painting issued a 20-year bond with a $1000 maturity value and a 4% coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $714.(a) What is the bond's yield to maturity? (b) If the bond can be called in 3 years for a redemption price of $1016, what is the bond's yield to call?
(No excel and Normal steps in a financial calculator on formulas with 4 decimal places, please )
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