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Problem 1 Five years ago, your firm issued bonds with twenty years to maturity and a 6% coupon rate. They have a $1,000 par value

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Problem 1 Five years ago, your firm issued bonds with twenty years to maturity and a 6% coupon rate. They have a $1,000 par value and pay interest semiannually. The bonds have a 4% yield to maturity. A. How much should you pay for the bonds today? B. How much should you pay for the bonds one year from today? C. How much should you pay for the bonds two years from today? Problem 2 Five years ago, your firm issued bonds with three years' worth of call protection and a 4% call premium. The bonds have a $1,000 par value and an 8% yield to maturity. The bonds make semiannual interest payments, have a 5% coupon, and ten years until maturity at the time of issuance. The firm is considering calling the bonds today. Should the firm? Why or why not

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