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please answer question 2 and 3 D E F H 1 N O Q 4 G M 1 Today is November 1, 2020 2 Charlotte
please answer question 2 and 3 D E F H 1 N O Q 4 G M 1 Today is November 1, 2020 2 Charlotte Industries has bonds that are set to mature on November 1, 2040. These bonds pay interest semi-annually and 3 are currently priced at $925. The coupon on the bonds is 3% and the bonds have a face value of $1000. 5 1. What is the yield to maturity for an investor who purchases the bonds today? 6 FV 1000 SCost of debt (bonds) 7 PV -925 (d) - YTM of existing bonds X (1.1) 8 NPER 40 (semiannual) 9 PMT 15 Annual Interest-Coupon X Face .03.1000-30 10 Rate 1.76% I=rate of return per period 11 YTM 3.53% 12 13 2. What is the capital gains yield for an investor who purchases the bonds today? 14 15 current yeild = 16 17 3. Explain why in 1 sentence whether or not Charlotte Industries would call these bonds today if they could
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