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Quantitative Problem: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8% with semiannual payments of $40,
Quantitative Problem: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8% with semiannual payments of $40, and a par value of $1,000. The price of each bond in the issue is $1,196.00. The bond issue is callable in 5 years at a call price of $1,080. What is the bond's current yield? Do not round intermediate calculations. Round your answer to two decimal places. % What is the bond's nominal annual yield to maturity (YTM)? Do not round intermediate calculations. Round your answer to two decimal places. % What is the bond's nominal annual yield to call (YTC)? Do not round intermediate calculations. Round your answer to two decimal places. % Assuming interest rates remain at current levels, will the bond issue be called? The firm call the bond. Quantitative Problem: Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10 year maturity. The par value of the bond is $1,000. If the going annual interest rate is 8.6%, what is the value of the bond? Do not round intermediate calculations. Round your answer to the nearest cent. $ Quantitative Problem: Potter Industries has a bond issue outstanding with a 6% coupon rate with semiannual payments of $30, and a 10 -year maturity. The par value of the bond is $1,000. If the going annual interest rate is 8.6%, what is the value of the bond? Do not round intermediate calculations. Round your answer to the nearest cent
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