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hi, please write this question out and explain the answers. thanks! A 30 -year maturity, 7% coupon bond paying coupons semiannually is callable in five
hi, please write this question out and explain the answers. thanks!
A 30 -year maturity, 7% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 6% ( 3% per half-year). Required: a. What is the yield to call annually? b. What is the yield to call annually if the call price is only $1,050 ? c. What is the yield to call annually if the call price is $1,100 but the bond can be called in two years instead of five yearsStep by Step Solution
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