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Harbucks Coffee semi-annual coupon, $1,000 par value bonds have 15 years to maturity. The bonds annual coupon rate is 7% and they sell for $1,035
Harbucks Coffee semi-annual coupon, $1,000 par value bonds have 15 years to maturity. The bonds annual coupon rate is 7% and they sell for $1,035 each. These bonds can be called in 3 years at a call price of $1,050. What is the bonds yield to call? What is the bonds yield to maturity? Which return would you expect to earn?
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