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Problem 18-26 Make-Whole Call Premium (LO2, CFA5) Assume that Kendal Corp, has an outstanding bond issue with a par value of $1,000 and a current

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Problem 18-26 Make-Whole Call Premium (LO2, CFA5) Assume that Kendal Corp, has an outstanding bond issue with a par value of $1,000 and a current market price of $1.034.70 per bond The bond has seven years remaining and a coupon rate of 6 percent. (Use Excel to answer this question. Enter your answer as a percent rounded to 2 decimal places.) a. Find the current yield to maturity for the Kendal Corp. bond. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Yield to maturity b. If the bond trades at a yield spread of 1.98 percent above comparable U.S. Treasury notes, what must the current yield on Treasury notes be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Treasury y old % c. If the Kendal bond has a make-whole call premium of 130 blisis points above the U.S. Treasury rate, what is the make whole call premium? (Do not round intermediate calculations. Enter the make-whole yield answer as a percent rounded to 2 decimal places. Enter the make-whole price answer in dollars rounded to 2 decimal places.) % Make-whole yold Make-whole price

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