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Hello, Please help me answer the question below: A.) Today you purchased a bond that matures in 5 years, with par value$1000. The bond's annual
Hello,
Please help me answer the question below:
A.) Today you purchased a bond that matures in 5 years, with par value$1000. The bond's annual coupon is 8%; the current yield is 8.21%. What is it yield to maturity? (Show your work)
B.)Bombs-Away bonds are currently selling at $1,200. Their face value is $1,000, coupon is 11% and years left to maturity is 10. The bonds are callable in five years, at 109. (Show your work)
What is the yield to maturity?
What is the yield to call if they are called at first opportunity?
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