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please provide an answer to ALL questions . thank you in advance for your help Coupon payments are foced, but the percentage return that investors
please provide an answer to ALL questions . thank you in advance for your help
Coupon payments are foced, but the percentage return that investors receive varies based on market conditions. This percentage return is referred to as the bond's yield. Vield to maturity (MTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the expected rate of return under certain assumptions. Which of the following is one of those assumptions? The bond is callable. The probability of default is zero. Consider the case of ETR Cost ETR Co. has 94, annual coupon bonds that are callable and have 18 vears left until maturity. The bonds have a par value of $1.000, and their current market price is $1,100.35. Howevec, ETR Co. may call the bonds in eght years at a call price of \$1,060. What are the rTM and the yield to call (YrTC) on errecis bonds? If interest rates are expected to remain constant, what is the best estimate of the remaining life left for irrs Co.'s bonds? Eyears 5 years 16 years 43 your If erR. Co issued new bonds today, the coupon rate muat be for the bonds have to be issued at par Step by Step Solution
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