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QUESTION 14 The Spruce Inc. is planning to issue two bonds. Both Bond Bill and Bond Ted have 8.5 percent coupon rates, make semiannual payments,

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QUESTION 14 The Spruce Inc. is planning to issue two bonds. Both Bond Bill and Bond Ted have 8.5 percent coupon rates, make semiannual payments, and have a maturity of 20 years. The difference between these two bonds is that Bond Bill is a bond without callable terms, whereas Bond Ted is a callable bond with a call protection period of 5 years and a call premium of $80. On the first day when these two bonds are traded on the market, the quoted price of Bond Bill is 97.3 and the quoted price of Bond Ted is 91.6. Requirement 1: What is the yield to maturity for Bond Bill? (Do not round intermediate results. Round your answer to this question to 2 decimal places. ) YTM Bond Bill % Requirement 2: What is the yield to call for Bond Ted? (Do not round intermediate results. Round your answer to this question to 2 decimal places.) YTC Bond Ted %

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