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Problem 12-08 Bonds of Francesca Corporation with a par value of $1,000 sell for $930, mature in five years, and have a 8% annual coupon

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Problem 12-08 Bonds of Francesca Corporation with a par value of $1,000 sell for $930, mature in five years, and have a 8% annual coupon rate paid semiannually. Do not round intermediate calculations. Round your answers to two decimal places. Calculate: a. current yield. % annually b. yield to maturity, to the nearest basis point. % annually c. horizon yield (or realized return) for an investor with a two-year holding period and a reinvestment rate of 7% over the period. At the end of two years, the 8% coupon bonds with three years remaining will sell to yield 8%. % annually

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