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Problem 2 (75 points): Congratulations, you have been hired as an analyst at the Procter and Gamble Co. (PG). It is November 1,2022 . PG

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Problem 2 (75 points): Congratulations, you have been hired as an analyst at the Procter and Gamble Co. (PG). It is November 1,2022 . PG just made a coupon payment (semi-annual) on its "8\% 2049" bonds that mature on November 1,2049 . The bonds currently sell for 106 with a par value of 100 a. What is the yield to maturity on the PG 2049 bond? YTM b. What is the Current Yield? The Capital Gains Yield? Current Yield = Capital Gains Yield = c. The PG 2049 bond was issued with a call provision that cannot be used the first five years. The bond was issued in 2019, so three years have already passed. If the bond is called on its first allowable date of November 1,2024 , the company will pay bondholders 102.5. What is the yield to call on the PG 2049 bond? YTC

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