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Must show work for your answers. It is acceptable if you just show calculator or Excel entries. Round your answers to four decimal places. An
Must show work for your answers. It is acceptable if you just show calculator or Excel entries. Round your answers to four decimal places. An 11-year 62% semiannual coupon bond with a par value of $1,000 may be called in 3 years at a call price of $1,020. The bond sells for $1,033.12. (Assume that the bond has just been issued.) 1. What is the bond's yield to maturity? 2. What is the bond's current yield? 3. What is the bond's yield on capital gain or loss? 4. d. What is the bond's yield to call? 5. If the investor's required rate of return is 7%, what type of bond is the bond in this question (par, premium, or discount bond) and why? Being this type of bond, is it likely called in three years? Explain your reasoning clearly
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