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Last year, Sally purchased a $1,000 face value corporate bond with no 8.6 percent anal coupon rate and a 20-year maturity. At the time of

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Last year, Sally purchased a $1,000 face value corporate bond with no 8.6 percent anal coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 6.3 percent. If Sally sold the bond today for $1.203.17, what rate of retum would she have cared for the past year? 4.289 Ob-4.32% c2.639 Od 2.5246 e. 8.60% It is now January 1, 2013, and you are considering the purchase of an outstanding bond that was issued on my 1, 2012. It has a 7 percentual coupon and had a 30. year original maturity. It matures on December 31, 2041.) There were 7 years of call protection (until December 31, 2018), after which time it can be called at 108 percent of par, or $1.00 Interest rates have fallen since the bond was issued, and it is now selling at 114 percent of par, or $1.140. If you bought this bood, what rate of return would you probably earn, assuming you hold the bonds until they either mature or are called a. 5.97% Ob 7.00% OC 6.07% d. 4.30% e 5.3795

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