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Seven years ago the Davidson, Inc. issued 2 0 - year bonds with an 1 1 % annual coupon rate at their $ 1 ,
Seven years ago the Davidson, Inc. issued year bonds with an annual coupon rate at their $ par value. The bonds had a call premium or $ with years of call protection. Today Davidson called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were calledthe YTC rateAssume interest is paid semiannually. Once you have the rate, calculate the selling price.
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